China & Indonesia Team Up to Pump Up Trade—And Keep Politics From Getting Too Hot
Whats going on? A big‑time shake‑up in China’s foreign‑policy world.
President Joko Widodo of Indonesia finally tips his hat to Beijing after a long stretch of COVID‑watchful hesitation.
The High‑Level Play
Jokowi met Xi Jinping and Li Keqiang in a bustling Beijing heartland on July 26. It was a first since the Winter Olympics in February, when President Vladimir Putin got a stamp of approval from the Chinese leadership. The Indonesian boss was looking for a “no‑harassment” visit, and [China’s] response was a full‑on “let’s roll!”
“Why Bother?” The Core Promises
The Chinese leaders pledged to step up trade, deepen cooperation in agriculture, and give Indonesia a full thumbs‑up for its upcoming role as ASEAN Chair. It’s a win, because Indonesia is China’s #1 trading partner and a huge source of commodities like ferronickel, coal, copper, and natural gas.
Did Anything Actually Come Out?
- China plans to import an extra 1 million tonnes of crude palm oil from Jakarta.
- This is a huge jump—over 30% more Chinese imports in the first half of 2022 compared to 2021 (the biggest boost aside from Russia).
Why It Matters
China’s praise for Indonesia as a “model strategic partner” is all the more serious given its recent sharp words for the United States over Taiwan, Ukraine, trade practices, and the South China Sea. With Jakarta’s new Asean assumption next year, the move offers a strategic partnership that could keep the region calm while boosting economies.
G20: The Back‑stage Drama
Jokowi is the G20’s 2025 president, but the group is simmering after Russia’s invasion of Ukraine. He’s been traveling between Kyiv and Moscow, trying to play a diplomatic bridge between the two capitals. China is “not condemning” Russia for the war but is craving a ceasefire and has opened a “hello call” for peace talks.
Some G20 members are chanting for a boycott of the November summit if Putin appears, but Jokowi has asked Xi to attend in any case. According to the joint statement, Xi thanked everyone and wished the summit “complete success.”
Bottom Line
Indonesia takes the reins as ASEAN chair, China gives it a boost, and both G20 members are poised to keep the world from turning into a wrestling match. The high‑level handshake and trade promises are a salute to a vibrant future where two giants win together—smiles, trading cards, and maybe even a few extra palm oils.
