Indonesia, China accelerate Twin Parks industrial cooperation with prioritized project list

Indonesia, China prioritize key projects under Twin Parks scheme

Indonesia and China have agreed to accelerate implementation of the Two Countries Twin Parks (TCTP) initiative by developing a prioritized list of key industrial projects designed to boost trade, investment, and cross-border cooperation between the two nations.

The agreement emerged from a bilateral meeting in Jakarta on Wednesday between Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto and Fujian Province Deputy Governor Zhao Zenglian, marking the latest milestone in a partnership first launched in January 2021 and renewed in May 2025 under the witness of President Prabowo Subianto and Chinese Premier Li Qiang.

Batang Industropolis: Indonesia's Shenzhen

At the heart of the discussions is the rapid development of the Batang Industropolis Special Economic Zone, which President Prabowo has envisioned as "Indonesia's Shenzhen." The 4,300-hectare zone, Indonesia's largest state-owned SEZ, was inaugurated on March 20, 2025. The comparison to Shenzhen—China's first Special Economic Zone and a former fishing village that transformed into a global manufacturing, technology, and transportation hub—signals ambitious aspirations for Batang's industrial future.

"One way to achieve this is by accelerating the implementation of various concrete projects within the TCTP program framework," Airlangga stated.

TCTP Framework and Investment Progress

The TCTP framework pairs specific zones in both countries: China designated the Yuanhong Investment Zone in Fuzhou, Fujian Province as the Chinese park, while Indonesia selected the Bintan Industrial Estate, Aviarna Industrial Estate, and Batang Industrial Estate as the Indonesian counterparts. To date, the program has yielded 30 Memoranda of Understanding involving economic zones, local governments, and business entities, with an estimated total investment value of 37.1 trillion rupiah (approximately US$2.3 billion).

Deputy Governor Zhao outlined several strategic measures to optimize the partnership, including strengthening coordination among stakeholders, identifying high-potential sectors, and developing structured follow-up mechanisms. "We are ready to work with the Indonesian government to promote regional development within the TCTP program," Zhao affirmed, noting Fujian Provincial Government's full commitment to building the shared ecosystem.

Strong Economic Ties Between Indonesia and China

The cooperation builds on substantial economic ties between the two nations, with bilateral trade reaching approximately US$135 billion in 2024. Indonesia is Fujian Province's largest trading partner in ASEAN, underscoring the strategic importance of this specific regional relationship. Together, Indonesia and China represent a combined population of 1.7 billion and an economic value of US$19.2 trillion, positioning them as strategic global market and production powers.

Recent momentum in the partnership was demonstrated in November 2025, when Indonesia and Fuzhou City signed 16 investment commitments worth approximately US$2.1 billion, covering sectors including steel exports, nickel, seafood processing, solar energy, and AI research.

Trade Facilitation and Future Plans

To support the business ecosystem, both parties are focusing on trade facilitation, customs coordination, and expanded market access to streamline supply chains and enhance regional investment appeal. The Indonesian government will integrate inputs from the meeting into a comprehensive master plan that will serve as the technical reference for future TCTP implementation.

Concluding the meeting, Deputy Governor Zhao formally invited Minister Airlangga to represent Indonesia at the upcoming China International Fair for Investment and Trade (CIFIT), one of the world's premier forums for global investment and trade. The event, scheduled for September 8, 2026, in Xiamen City, attracts participants from over 100 countries and regions annually.