Chinese Premier Li Qiang arrived in Jakarta on May 24, 2025 for an official visit at the invitation of Indonesian President Prabowo Subianto.

Following his engagements in Indonesia, Li is set to visit Malaysia.

Li will also attend the ASEAN-GCC-China Summit in Kuala Lumpur from May 26 to 28, 2025.

🔗 Source: Xinhua

🧠 Food for thought

1️⃣ Evolution from historical tensions to economic interdependence

China-Indonesia relations have transformed dramatically over 75 years of diplomatic relations, moving from periods of significant strain to deep economic partnership.

During Suharto’s “New Order” regime (1967-1998), Indonesia severed diplomatic ties with China and banned Chinese cultural expressions, with relations only restored in 1990 following decades of suspicion 1.

This historical tension contrasts sharply with today’s reality where China has been Indonesia’s largest trading partner for over a decade, with bilateral trade reaching $149.09 billion in 2022, a 19.8% increase from the previous year 2.

The Jakarta-Bandung high-speed railway, completed in October 2023, symbolizes this transformation as a flagship project of China’s Belt and Road Initiative in Indonesia, representing billions in infrastructure investment 1.

China has become Indonesia’s second-largest source of foreign investment, with significant funding flowing into renewable energy, electric vehicles, and mining sectors, creating a deep economic interdependence that would have been unimaginable during the mid-20th century 2.

2️⃣ Indonesia’s pivotal balancing role amid great power competition

Indonesia has emerged as a crucial strategic player in Southeast Asia, carefully navigating relations between China and the United States while advocating for ASEAN’s neutrality principle.

As ASEAN’s largest member with a population exceeding 270 million, Indonesia has taken a leadership role in shaping regional architecture that promotes cooperation while protecting national sovereignty interests 3.

The country has been instrumental in pushing for negotiations on a Code of Conduct in the South China Sea, despite China’s territorial claims that occasionally overlap with Indonesia’s exclusive economic zone near the Natuna Islands 3.

Indonesian leadership has consistently positioned ASEAN as an economic growth hub that maintains strategic autonomy, refusing to choose sides while benefiting from relationships with both superpowers 3.