Security, politics, economic issues set to dominate talks as Jakarta tries to balance ties with Beijing, Washington
\n Beijing
\nChina\u2019s defence and foreign ministers met their Indonesian counterparts on Friday, with security, politics and economic issues set to dominate talks, as Jakarta tries to balance ties with both Beijing and Washington amid trade battles and tensions in the South China Sea.
\nChina\u2019s Foreign Minister Wang Yi, visiting Jakarta for the first time in two years, met Indonesian counterpart Sugiono and was due to participate later in a \u201c2+2\u201d meeting with the two countries\u2019 defence ministers.
\nWang in introductory remarks said that amid complex global challenges, it was timely they were meeting under the new dialogue mechanism and both countries should \u201cseize the moment\u201d.
\n\u201cUnilateralism and hegemonic acts bring serious impact on global cooperation and stability,\u201d he said. \u201cChina actively aims to build China-Indonesia cooperation at a high level.\u201d
\nThe foreign ministers were expected to focus on economic issues as well as political relations, Jakarta has said, while China\u2019s foreign ministry this week said political and security issues, defence cooperation, and international and regional issues would be discussed.<\/p>\n
Higher-value cooperation
\nChinese Defence Minister Dong Jun was greeted by a military honour guard as he arrived at Indonesia\u2019s defence ministry on Friday, where he said both countries\u2019 militaries had scope to work together to boost their ability to protect their national interests and thwart external threats.
\n\u201cThe prospects for cooperation between the two militaries are broad, and that such cooperation is becoming higher in quality and more effective,\u201d Dong said.
\nIndonesian Defence Minister Sjafrie Sjamsoeddin said there would be increased defence activities between their militaries, including joint exercises and officer exchanges, plus partnerships in the defence industry.
\n\u201cThis is a progressive step taken in the era of building Indonesia\u2019s defence power at this moment and in the future,\u201d Sjafrie said.<\/p>\n
Valuable lesson
\nLast week, Taiwan, which China claims as its own territory, was angered by a rare joint military exercise between the Chinese and Indonesian navies that took place east of Taiwan.
\nIndonesia\u2019s navy said a vessel conducted routine exercises, not only with China, but also with Japan and the United States.
\nDefence analyst Curie Maharani said that while Indonesia saw the exercise as routine, the location enabled China to signal a different political message.
\n\u201cIndonesia learned a valuable lesson about how great powers use defence diplomacy more as an instrument of influence projection,\u201d she said.
\nIndonesia also has its own disagreements with China over developments in the South China Sea, which Beijing claims almost in its entirety. Jakarta has been measured in its remarks, however, and sees itself as not being party to wider territorial disputes involving China and the Philippines, Malaysia and Vietnam.
\nIndonesian President Prabowo Subianto has repeatedly said he maintains Indonesia\u2019s \u201cfree and active\u201d foreign policy of non-alignment, vowing to befriend all countries including China and the United States.
\nTrade and investment
\nChina is a major investor in Indonesia, contributing $3.9 billion of foreign direct investment in the first half of 2026, according to Indonesian figures. But regulations around some of that investment have been a source of friction.
\nIn May, Chinese companies operating in Indonesia urged the government to adopt more business-friendly policies, saying higher taxes and a new nickel pricing formula were driving up costs and threatening investment.
\nIn a letter seen by Reuters, the China Chamber \u200bof Commerce in Indonesia said Chinese firms faced \u201cexcessively stringent regulation, over-enforcement\u201d, and alleged corruption and extortion by authorities.
\nKey investors include the world\u2019s biggest EV battery maker, Contemporary Amperex Technology 300750.SZ, and steelmaker Tsingshan Group, which has smelters in Indonesia, home to the world\u2019s largest nickel reserves.<\/p>\n","protected":false},"excerpt":{"rendered":"
Security, politics, economic issues set to dominate talks as Jakarta tries to balance ties with Beijing, Washington Beijing China\u2019s defence and foreign ministers met their Indonesian counterparts on Friday, with security, politics and economic issues set to dominate talks, as Jakarta tries to balance ties with both Beijing and Washington amid trade battles and tensions […]<\/p>\n","protected":false},"author":2,"featured_media":563284,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-563264","post","type-post","status-publish","format-standard","has-post-thumbnail","category-world"],"yoast_head":"\n