OPINION / VIEWPOINT
Indonesia and China should build more, and build better
Published: Oct 15, 2026 08:36 PM
China and Indonesia. Photo: VCG

China and Indonesia. Photo: VCG

When President Prabowo Subianto on October 8 called investors at the Indonesia Weda Bay Industrial Park saudara, which means family, I heard more than hospitality. He promised to protect partners who trust Indonesia and venture into undeveloped regions as the country protects its own family. Five days later, Beijing responded. A spokesperson for China's Foreign Ministry subsequently expressed appreciation for President Prabowo's remarks, stressing that "we are confident that the Indonesian government will continue to protect Chinese companies' legitimate rights and interests and provide an open, fair, transparent and friendly business environment." 

Weda Bay is a new beginning of cooperation between China and Indonesia. And in my view, China and Indonesia have far more room to expand their nickel industrial partnership than they have used so far. This partnership should be used to build more and build better, and ensure long-term prosperity and a shared future for the peoples of both countries. 

Start with what has already happened. The launch covered 11 projects worth $10.2 billion, including four entering commercial operation, seven starting construction, plus Indonesia's first export of electric vehicle batteries. The industrial park with more than $20 billion in cumulative investment and over 100,000 jobs puts exports of nickel and its derivatives at $3.3 billion in 2017 and $33.9 billion in 2024. Anyone who still calls this "resource plunder" must explain how a country that banned raw ore exports in 2020 now ships batteries, products judged on safety, lifespan and carmaker approval rather than on tonnage.

So where is the room to grow? I see three places.

First, further up the value chain. Each added stage keeps more of the value on Indonesian soil, and Chinese firms already have the technology and supply networks to build them.

Second, skills. The Weda Bay Industrial Park has signed internship agreements with Universitas Padjadjaran, the Bandung Institute of Technology, Universitas Gadjah Mada and Politeknik Negeri Jember, with a June 2026 start date. The priority majors range from metallurgy to Chinese language and culture. I would scale that into joint vocational schools and research laboratories, so that technical and managerial jobs in new plants go to Indonesians trained alongside Chinese engineers.

Third, finance. The two governments are working on local-currency settlement, renminbi clearing, cross-border QR payments and "two countries, two parks" projects. Bilateral trade reached $167.4 billion in 2025, up 13.4 percent. Cheaper and steadier payment channels lower the cost of every project that follows.

Expansion on this scale also raises questions that Indonesian and Chinese partners should answer together. Working hours and workplace safety, air, water and waste, and the share of value that stays in the regions where nickel is mined all draw attention in Indonesian media, and the Weda Bay Industrial Park and the government say they are working on them. I read that as an invitation to partnership, especially for open data, shared standards and regular joint review for better cooperation.

Prabowo wants 8 percent growth by 2029, which requires investment Indonesia cannot raise alone, and Jakarta welcomes any capital investment that is willing to work together. Weda Bay has shown what is possible. Now, both governments should write the next chapter by developing a roadmap with measurable goals: more value added at home, more Indonesian expertise in the control rooms, safer shifts and cleaner water, more mutually recognized standards and certifications, and more transparent and predictable investment rules. If they do, saudara will describe a real partnership, and nickel will be remembered as its first chapter.

The author is a research coordinator at the ASEAN-China Research Center of Universitas Indonesia. opinion@globaltimes.com.cn