China and Indonesia Agree to Boost Military Ties

Indonesian Foreign Minister on X

The Chinese-Indonesian meeting.

China and Indonesia agreed on Friday to strengthen military cooperation and deepen collaboration on minerals, energy and technology, as Jakarta seeks to balance its relations with Beijing and Washington amid rising economic and geopolitical tensions, including in the South China Sea.

The two countries should “seize the moment”, Chinese Foreign Minister Wang Yi said at the start of his visit to Jakarta. Wang was travelling alongside Defence Minister Dong Jun for meetings with their Indonesian counterparts.

"The current international situation is intertwined and complex. Unilateralism and hegemonic acts bring serious impact on global cooperation and stability," he said.

"China actively aims to build China-Indonesia cooperation at a high level," Wang added.

Indonesian President Prabowo Subianto has advocated maintaining Indonesia's "free and active" foreign policy of non-alignment, vowing to befriend all countries including China ⁠and the United States, an important trade partner with which Jakarta's defence ties are expanding.

Wang said both sides agreed to support each other's core interests and will cooperate more in energy and mineral resources.

Resource-rich Indonesia, a $1.4 trillion G20 economy, holds vast reserves of nickel, tin, copper, gold and bauxite. It is also the world’s largest exporter of palm oil and thermal coal, with China among its leading buyers.

China dominates investment in Indonesia’s nickel-processing sector, but recent policy changes, including export restrictions and tighter mining quotas, have prompted some companies to seek alternative sources of supply elsewhere.

Chinese Defence Minister Dong Jun was welcomed by an Indonesian military guard of honour on Friday as he arrived in Jakarta for talks with his Indonesian counterpart, Sjafrie Sjamsoeddin.

"The prospects for cooperation between the two militaries are broad, and that such cooperation is becoming higher in quality and more effective," Dong said.

Sjafrie said there would be increased defence activities between their militaries, including joint exercises and officer exchanges.

Later, after a meeting between the defence and foreign ministers of both countries, Sjafrie told reporters that they also discussed a joint munitions factory in ‌Indonesia, producing ⁠ammunition, missiles and rockets and including a possible transfer of technology from China. The factory is expected to start operation by 2027.

"This is a progressive step taken in the era of building Indonesia's defence power at this moment and in the future," he said.

China is a major investor in Indonesia, contributing $3.9 billion in foreign direct investment during the first half of 2026, according to Indonesian government figures. However, regulations governing some of these investments have become a source of friction between the two countries.

In May, Chinese companies operating in Indonesia urged the government to introduce more business-friendly policies, citing concerns over higher taxes and a new pricing formula for nickel.



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