China, Indonesia Hold 2+2 Talks as US$3.9 Billion Investment Ties Face South China Sea Strains
Updated
Updated · newswav.com · Aug 21
China, Indonesia Hold 2+2 Talks as US$3.9 Billion Investment Ties Face South China Sea Strains
3 articles · Updated · newswav.com · Aug 21
Summary
Jakarta on Friday hosted China-Indonesia 2+2 talks on defence, regional security, politics, trade and investment, bringing Wang Yi together with Indonesian foreign and defence ministers.
The meeting comes days after a rare joint naval exercise east of Taiwan, a move Taipei criticized and analysts said showed how Beijing can use defence diplomacy to project influence.
South China Sea frictions still shadow the relationship after a 2024 maritime agreement's wording stirred controversy over possible "joint development" in overlapping claims; Indonesia later reaffirmed it rejects China's claims.
US$3.9 billion in Chinese FDI flowed into Indonesia in the first half of 2026, but Chinese firms have warned that higher taxes, a new nickel pricing formula and heavy regulation are raising costs.
For President Prabowo, the talks test Indonesia's "free and active" policy as it seeks deeper ties with Beijing without weakening relations with Washington and other regional partners.