China and Indonesia agreed to deepen their military, maritime and technology cooperation in high-level talks in Jakarta on Friday, underscoring Beijing’s growing regional reach at a time of renewed uncertainty over US security commitments in Asia.
Indonesian Defense Minister Sjafrie Sjamsoeddin, after meeting his Chinese counterpart Dong Jun, said both countries will expand personnel exchanges and defense-industry cooperation to strengthen military capabilities. Hours later, Foreign Minister Sugiono and China’s Wang Yi agreed to explore greater market access for key Indonesian commodities and deepen cooperation in artificial intelligence, communications satellites, energy and minerals.
Wang said the countries would restart fisheries cooperation and promote joint development in the South China Sea, while working toward concluding talks on a regional code of conduct. Sugiono said they also committed to continuing the Jakarta-Bandung high-speed rail project, using sustainable financing and efforts to increase passenger volumes.
The meetings came ahead of a second foreign-and-defense ministerial, or ‘2+2’ dialogue due later Friday, and add a new strategic layer to a relationship underpinned by roughly $155 billion in two-way trade last year. They also highlight President Prabowo Subianto’s effort to deepen ties with both Beijing and Washington, which are competing for influence in the region.
Indonesia and the US in April established the Major Defense Cooperation Partnership covering military modernization, training, exercises and operational cooperation. Still, many in Asia are questioning Washington’s commitment to the region, especially after President Donald Trump abruptly curtailed exercises with South Korea.
Indonesia’s closer China ties also build on the first 2+2 dialogue in Beijing in April 2025, when Jakarta and Beijing agreed to deepen security and maritime cooperation, including intelligence exchanges, coordinated operations and stronger coast guard ties.
The foreign ministers on Friday also launched the first Indonesia-China Comprehensive Strategic Dialogue and welcomed discussions on a five-year action plan for 2027-2031.
China has pushed for a broader strategic role for the partnership. Dong said the countries should deepen security cooperation through Association of Southeast Asian Nations frameworks and serve as an example of defense ties among Global South nations. He also called on them to thwart the ‘malicious intentions of external forces,’ according to a simultaneous translation.
But the sensitivity of that cooperation was on display just over a week before Wang and Dong’s visit. China described an interaction between Chinese and Indonesian warships east of Taiwan as a joint ‘navigation exercise,’ while Indonesia called it a routine passing exercise by a frigate returning from Russia and stressed that it wasn’t related to war-fighting.
Taiwan, which China asserts is its territory, condemned the maneuver.
The closer security cooperation also comes despite longstanding differences in the South China Sea. A 2024 joint statement between Prabowo and Chinese President Xi Jinping referred to ‘joint development in areas of overlapping claims,’ prompting concern that Jakarta was softening its opposition to Beijing’s sweeping maritime claims. Indonesia later said it didn’t recognize China’s nine-dash line or any overlapping maritime claims, including in waters near the Natuna Islands.
Defense ties could extend further into weapons procurement. Indonesia has been considering buying Chinese-made Chengdu J-10 fighter jets, although no contracts have yet been finalized.
Economic cooperation remains central to the relationship. Sugiono said the two countries agreed to strengthen local-currency transactions and financial collaboration, while Wang said Indonesia had committed to providing a fair, transparent and conducive business environment for Chinese companies.
There have been some corporate frictions. Chinese companies have complained that tighter Indonesian nickel policies are raising costs and threatening investments, while China’s embassy warned that the policy changes could put about $50 billion of existing and planned investment at risk.