Archive · 21 Aug 2026
China, Indonesia Ministers Prepare Security and Economic Talks
China and Indonesia are sending their foreign and defence ministers to meet on Friday.
They will talk about security, politics, trade and investment.
Indonesia wants good relationships with China and the United States.
The countries recently held a naval exercise that Taiwan criticized because of where it happened.
Indonesia said the exercise was routine and also conducts similar exercises with Japan and the United States.
China and Indonesia also disagree about parts of the South China Sea.
China invests heavily in Indonesia, including in battery and steel projects.
Some Chinese companies say Indonesian taxes, rules and permits make business too difficult.
Indonesia says it wants to avoid conflict while keeping its independent foreign policy.
China and Indonesia will hold foreign and defence ministers’ talks on Friday.
Discussions are expected to cover security, politics, economic issues and regional affairs.
Indonesia is balancing relations with China, the United States and other partners.
A recent China-Indonesia naval exercise drew concern because of its location near Taiwan.
Chinese investment remains significant, while companies have criticized Indonesian regulations and costs.
- Who
- China’s Foreign Minister Wang Yi and Indonesia’s foreign and defence ministers, including Indonesian Foreign Minister Sugiono.
- What
- A ministerial meeting on security, politics, defence cooperation, economic issues and regional affairs.
- When
- Friday, following Wang Yi’s visit to Jakarta.
- Where
- Jakarta, Indonesia.
- Why
- To discuss bilateral relations, security cooperation, regional issues, trade and investment amid disagreements over the South China Sea and investment regulations.
Indonesian Government Position
Analysts’ and Business Concerns
Naval exercise
Indonesian Government Position
Indonesia’s navy said the exercise with China was routine and noted that it also conducts exercises with Japan and the United States.
Analysts’ and Business Concerns
Analyst Curie Maharani said the exercise’s location enabled China to project a political message and showed how defence diplomacy can be used for influence.
South China Sea policy
Indonesian Government Position
Indonesia says it does not recognise China’s claims and prefers engagement through defence diplomacy without escalating tensions.
Analysts’ and Business Concerns
Analysts interpreted wording in the 2024 maritime development deal as potentially changing Indonesia’s long-held position as a non-claimant state.
Investment regulation
Indonesian Government Position
President Prabowo Subianto has called for deregulation, saying foreign investors face too many permits and lengthy approval processes.
Analysts’ and Business Concerns
The China Chamber of Commerce in Indonesia said Chinese firms faced excessively strict regulation, over-enforcement, alleged corruption and alleged extortion.
- Meeting format
- The foreign ministers will meet, and both countries’ foreign and defence ministers will participate in a “2+2” meeting.
- Chinese delegation
- Wang Yi is visiting Jakarta for the first time in two years.
- Naval exercise
- China and Indonesia recently held a joint naval exercise east of Taiwan; Indonesia described it as routine.
- South China Sea
- Indonesia does not recognise China’s claims, although a 2024 maritime development deal referred to joint development in areas of overlapping claims.
- Chinese investment
- Chinese foreign direct investment in Indonesia totaled $3.9 billion in the first half of 2026, according to Indonesia’s investment ministry.
- Business concerns
- Chinese companies have cited higher taxes, a new nickel pricing formula, stringent regulation and lengthy approvals as investment challenges.
- Major investors
- Contemporary Amperex Technology Co and Tsingshan Group have built smelters in Indonesia.