China and Indonesia have agreed to strengthen military ties and deepen cooperation in minerals, energy and technology as Jakarta balances relations with Beijing and Washington amid economic and geopolitical tensions.
Both countries should "seize the moment," Chinese Foreign Minister Wang Yi, who is visiting Jakarta with Chinese Defence Minister Dong Jun for talks with their Indonesian counterparts, said in introductory remarks.
"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.
The two countries pledged to cooperate across multiple areas, including artificial intelligence, defence, rail transport, green energy, satellites and fisheries.
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 U.S., a key trading partner with which Jakarta is also expanding defence ties.
Wang said both sides agreed to support each other's core interests and cooperate more closely on energy and mineral resources.
Resource-rich Indonesia, a $1.4 trillion G20 economy, has vast deposits of nickel, tin, copper, gold and bauxite. It is alsothe world's largest exporter of palm oil and thermal coal, with China among its top buyers.
China dominates investment in Indonesia's nickel processing sector, but recent policy changes, including export measures and tighter mining quotas, have prompted some companies to seek alternatives elsewhere.
Dong was welcomed by a military honour guard on Friday as he arrived for talks with Indonesian Defence Minister 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 the two militaries would increase defence activities, including joint exercises and officer exchanges, as well as partnerships in the defence industry.
"This is a progressive step taken in the era of building Indonesia's defence power at this moment and in the future," he said.
Last week, Taiwan, which China claims as its own territory, expressed anger over a rare joint military exercise between the Chinese and Indonesian navies east of the island. Indonesia's navy said one of its vessels had conducted routine exercises not only with China, but also with Japan and the U.S.
Defence analyst Curie Maharani said that while Indonesia viewed the exercise as routine, its location enabled China to signal a different political message.
"Indonesia learned a valuable lesson about how great powers use defence diplomacy more as an instrument of influence projection," she said.
Indonesia also has its own disagreements with China over developments in the South China Sea, most of which Beijing claims as its territory.
Jakarta has been measured in its remarks, however, and does not consider itself a party to wider territorial disputes involving China, the Philippines, Malaysia and Vietnam.
China is a major investor in Indonesia, accounting for $3.9 billion in foreign direct investment in the first half of 2026, according to Indonesian figures. However, regulations governing some investments have caused friction.
In May, Chinese companies operating in Indonesia urged the government to adopt more business-friendly policies, saying higher taxes and a new nickel pricing formula were driving up costs and threatening investment.
In a letter seen by Reuters, the China Chamber of Commerce in Indonesia said Chinese firms faced "excessively stringent regulation, over-enforcement", and alleged that authorities were involved in corruption and extortion.
Key investors include the world's largest electric vehicle (EV) battery manufacturer, Contemporary Amperex Technology, and steelmaker Tsingshan Group, which has smelters in Indonesia.
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