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Indonesian President Prabowo Visits Beijing and Washington

November 22, 2024

Once I was invited [to visit] by China, America also invited me. Wow, an invitation from both superpowers? I couldn’t possibly refuse that, right? For the sake of the [Indonesian] people, I must attend!

 – President Prabowo Subianto

Indonesia’s new President, Prabowo Subianto, made back-to-back stops in Beijing and Washington, D.C., between Nov. 8-12 on his way to his first Asia-Pacific Economic Cooperation (APEC) Summit as Indonesia’s leader. Guiding Indonesia’s foreign policy is the principle of non-alignment, or sometimes phrased as “a thousand friends, zero enemies.”  There is considerable discussion regarding how Prabowo will uphold Indonesia’s neutrality amid U.S.-China tensions.  

However, there is enormous merit in close cooperation with both the United States and China that goes beyond any consideration of geopolitical competition—Indonesia needs the United States and China. Prabowo’s central economic goal is to boost GDP growth to 8% per year, a rate considered necessary to escape the “middle income trap.” To do this, Indonesia will need investments, technology and market access from both China and the United States. Thus, Prabowo’s visits to Beijing and Washington are first and foremost about strengthening the economic ties that will be critical to his presidency. 

Key Takeaway

Alongside President Prabowo’s meetings with Chinese President Xi Jinping and U.S. President Joe Biden, and a highly publicized courtesy phone call with President-elect Donald Trump, was a flurry of activities across a wide range of topics, including renewable energy, critical minerals and the digital economy.  

In Beijing, there were substantial economic and infrastructure deals, including energy, joint-industrial parks and tech. China signed agreements on nickel and support for Indonesia’s down streaming ambitions. Health care and human resource development were also highlighted. 

While in Washington, there was an emphasized strategic cooperation on global challenges like the climate crisis and supply chains and support for Organization for Economic Co-operation and Development (OECD) membership. There were also tangible investments in energy and health care. Partnership on critical minerals, an Indonesia and United States priority, were pointed to but no clear agreement emerged.  

Comparison

Strategic Cooperation & Global Role

Beijing

Washington 

  • Global Stability: In their Joint Statement, Presidents Biden and Prabowo urged a ceasefire and end to the conflict in Gaza, expressing deep concern over the humanitarian situation and condemning all attacks on civilians. Biden and Prabowo also stated their support for a two-state solution.  

Economic Cooperation & Investments

Beijing

  • Nickel Processing & Green Projects: Standout deals signed during the visit include an agreement between Indonesian and Chinese businesses to construct two 200MW floating solar and wind plants. Another Indonesian business signed a $1.4 billion nickel processing deal with a Chinese battery metal producer. 
  • Industrial Cooperation: The two countries stated they will aim for greater integration of their industrial, supply, value and talent chains. They also called for expanded bilateral trade and investment, increased use of local currencies and the creation of a favorable business environment. China’s support for Indonesia’s North Kalimantan Industrial Park was highlighted as an example for regional economic corridors and bilateral industrial parks. 

Washington 

  • OECD Membership: Biden stated that the United States strongly supports Indonesia’s bid for OECD membership, offering assistance with the implementation of any necessary governance, trade and labor reforms. 
  • Investment Talks: Prabowo recently met with representatives from 12 U.S. companies under the United States–Indonesia Society (USINDO), to discuss investment opportunities in Indonesia. Key topics included boosting oil and gas capacity, renewable energy and carbon capture and storage, which U.S. businesses see as critical for Indonesia’s net-zero emissions goals. Prabowo emphasized geothermal energy development and reducing bureaucratic hurdles to attract more investments. 

Energy & Infrastructure

 Beijing 

Washington 

Health Care & Human Development

Beijing 

Washington 

Technology

 Beijing 

  • HR: Indonesia and China agreed to boost student exchanges and scholarship programs, focusing on science, technology, engineering and math (STEM) education, language training and digital talent development. Chinese companies are encouraged to incorporate training as part of their localization strategies. 

Washington 

These agreements spanning a wide range of sectors are still in their preliminary phases. However, there are clear signs that the cornerstone of Prabowo’s economic and foreign policy is the strengthening of the political framework that welcomes private sector participation from both countries.  

The piece was co-authored by APCO intern Pier Ballo. 

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