RI-China Agrees To Establish Twin Industrial Zones In Batang, Bintan, And Fujian

BPMI Setpres

RI-China Agrees To Establish Twin Industrial Zones In Batang, Bintan, And Fujian

Wednesday, 28 May 2025

The Indonesian Government and the Chinese Government have signed a memorandum of understanding to extend their industrial cooperation. The signing took place at the Merdeka Palace in Jakarta on Sunday (May 25, 2025), witnessed by President Prabowo Subianto and Chinese Prime Minister Li Qiang. Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the cooperation, titled Two Countries, Twin Parks (TCTP), will encompass industrial zones in Batang, Central Java, and Bintan, Riau Islands, as well as Fujian Province in China. "The Two Countries, Twin Parks that we have scheduled in Batang covers an area of 500 hectares and is aimed to become Indonesia's Sichuan. Additionally, there is another site in Bintan, within the industrial estate there. The counterpart in China is located in Fujian Province. Therefore, there are three parks involved in this collaboration," Airlangga stated after the signing ceremony, as reported by Antara.

TCTP is an initiative from China to connect domestic industrial zones with foreign partners. Indonesia is one of the countries involved in this project.

Airlangga mentioned that this cooperation is expected to attract significant investments and strengthen the supply chains of both nations. "Certainly, investments will flow in, and there is also a commitment to enhance the supply chain between the two countries," he remarked. The investment target for the industrial zone in Batang is set at a minimum of 3 billion US dollars, approximately IDR 48.78 trillion (at an exchange rate of IDR 16,261 per US dollar). The investment value for Bintan is still under further discussion. "In the technical aspects of the MoU, we have also discussed how many people could potentially be employed. In Batang, we hope that more than 100,000 people can be employed there," Airlangga added. A total of four MoUs were signed in the presence of President Prabowo and PM Li Qiang, one of which is the TCTP cooperation involving the Coordinating Ministry for Economic Affairs, the Ministry of Commerce of China, and the Government of Fujian Province.