Indonesia and China Agreed to Expedite Trade Talks
Officials met in Beijing to fast-track preparations for the upcoming IDC-CEPA trade agreement negotiations.
Updated on Sept. 30, 2026 in International Trade
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Indonesia and China have reached a new agreement to accelerate the groundwork for the IDC-CEPA trade pact. The bilateral commitment follows a meeting in Beijing aimed at deepening economic ties and market access between the two nations.
Why it matters
The agreement is designed to foster a complementary economic relationship that prioritizes long-term cooperation over competition. It seeks to expand existing trade channels and integrate support for digital and green economic initiatives.
Indonesia reported $64.82 billion in non-oil and gas exports to China in 2025, marking a 7.11 percent increase. Additionally, China and Hong Kong provided $7.5 billion and $10.6 billion in foreign direct investment to Indonesia, respectively.
The players
Edi Prio Pambudi
He is an Indonesian government representative who participated in the high-level trade discussions in Beijing.
Chen Chao
He is a Chinese official who met with Indonesian counterparts to negotiate the acceleration of the trade agreement.
The details
The collaboration will include capacity-building initiatives, specifically through training programs for Indonesian civil servants led by Chinese institutions. Beyond the trade agreement, both nations have aligned to support the World Artificial Intelligence Cooperation Organization to boost Indonesia's digital economy.
Timeline
In 2025, Indonesia's non-oil and gas exports to China reached $64.82 billion.
On July 16, 2026, the agreement to establish the World Artificial Intelligence Cooperation Organization was signed.
On September 26, 2026, representatives held a bilateral meeting in Beijing to discuss trade.
Market Dynamics
This agreement reflects a broader effort to formalize and deepen the economic architecture of the Indonesia-China trade corridor. By fast-tracking the IDC-CEPA, both nations are working to insulate their bilateral commercial relationship from global market volatility.
Retail and institutional investors with exposure to Southeast Asian markets should watch for potential reductions in trade barriers as negotiations progress. These policy shifts may influence long-term capital allocation strategies for emerging market portfolios.
The takeaway
The move signals a strategic pivot toward closer integration between the two economies. Readers should track future updates on the IDC-CEPA to understand potential changes in market access and digital investment opportunities.
Further reading
Learn more about evolving global commercial policy in the International Trade section.
Source note: This article includes information reported by Antara News.
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