Antara News·Indonesia·Wednesday, September 30, 2026 at 09:45 AM

Indonesia, China seek to expedite IDC-CEPA negotiations: Official

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Bayu Saputra, Resinta Sulistiyandari

Jakarta (ANTARA) - Indonesia and China have agreed to expedite preparations for negotiations on the Indonesia-China Comprehensive Economic Partnership Agreement (IDC-CEPA) to broaden market access and deepen bilateral economic cooperation.

The agreement was one of the outcomes of a bilateral meeting between Edi Prio Pambudi, Deputy for Coordination of Economic Cooperation and Investment at the Coordinating Ministry for Economic Affairs, and Chen Chao, Director General of International Trade and Economic Affairs at China’s Ministry of Commerce (MOFCOM), in Beijing on September 26.

Pambudi said the CEPA is expected to strengthen economic ties between the two countries by prioritizing complementary cooperation.

“Now is the right moment for Indonesia and China to strengthen economic relations through the CEPA. We want the CEPA to prioritize complementary cooperation, not competition, so that both parties can benefit,” he said in a statement on Wednesday.

He noted that China remains Indonesia’s largest market for non-oil and gas exports.

Indonesia’s non-oil and gas exports to China totaled US$64.82 billion in 2025, marking a 7.11 percent increase from the previous year.

China and Hong Kong were also among the top three sources of foreign direct investment (FDI) in Indonesia in 2025, with investment realizations reaching US$7.5 billion and US$10.6 billion, respectively.

Despite strong trade and investment ties, Indonesia and China do not yet have a bilateral trade agreement.

Currently, trade cooperation between the two countries is conducted under the ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP).

Meanwhile, China welcomed the invitation, with Chen Chao expressing optimism that the CEPA would benefit businesses in both countries.

In addition to the CEPA discussions, Indonesia and China also discussed green economy development through the Green Partnership Agreement for Development (GPAD), a Chinese initiative aimed at strengthening green trade and investment, particularly in developing countries.

Both sides also agreed that developing countries need to play a more active role in developing global rules and standards for the green economy.

During the meeting, Indonesia also expressed its support for the World Artificial Intelligence Cooperation Organization (WAICO).

The agreement establishing the organization under the United Nations (UN) framework was signed by Coordinating Minister for Economic Affairs Airlangga Hartarto and the founding member countries on July 16, 2026.

Support for WAICO is expected to have a positive impact on Indonesia’s digital economy, particularly by advancing artificial intelligence, developing digital talent, and expanding access to high technology.

On the same occasion, Pambudi expressed his appreciation to MOFCOM for organizing a seminar on upskilling negotiation skills for Indonesian officials by the Academy for International Business Officials (AIBO).

Both sides agreed to strengthen capacity-building cooperation, with China planning training programs for Indonesian civil servants in strategic areas such as AI, digital trade, technology, negotiations, and global issues.

As a follow-up, Indonesia will propose a Letter of Intent (LoI) on the cooperation.

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