5 Major China-Indonesia Projects in Jokowi's Era

TEMPO.CO, Jakarta - The economic partnership between China and Indonesia is progressively deepening and entering a golden age under the leadership of Indonesian President Joko "Jokowi" Widodo, said Wu Zhiwei as the Counselor of the Economic and Commercial Counselor's Office of the Chinese Embassy in Indonesia. 

This is evident from the data released by the Chinese Ministry of Investment that China emerged as the second-largest investor in Indonesia in 2022 and 2023, with a total investment of US$8.2 billion and US$7.4 billion, respectively.

Here is a list of five major China-Indonesia projects and their latest developments:

1. Jatigede Reservoir

The construction of the Jatigede Reservoir in West Java was initially planned in 1970 with an estimated production cost of Rp2.5 trillion. The deal, however, was signed in 2007. The government proposed an additional outlay of US$53.2 million for the completion of the dam access road and further construction.

The Indonesian Public Works and Housing (PUPR) Minister Basuki Hadimulyono inaugurated the reservoir, which serves to irrigate agricultural land and generate electricity, on August 31, 2015. 

Recent reports suggested that the West Java government planned to build a Drinking Water Supply System (SPAM) for the Greater Cirebon area in the Jatigede Reservoir area in 2024. The country’s second-largest reservoir has a capacity of 979.5 million cubic meters.

2. Medan-Kualanamu Toll Road

The Medan-Kualanamu toll road project in Medan, North Sumatra is one of the government's five priority toll road projects. The construction commenced on November 7, 2012, with a final length of 17.8 kilometers. Although the Chinese government and China Exim Bank had postponed the individual loan agreement during construction, the project was completed well and inaugurated in 2017.

3. Jakarta-Bandung High-Speed Train

The Jakarta-Bandung bullet train project began in 2022. The project incurred a construction cost overrun of up to Rp110.22 trillion. The funding was primarily sourced from Chinese loans, which accounted for 75 percent, with Indonesian funds covering the remaining 25 percent. The train’s operating speed reaches 350 km/hour and is reported to be extended to Surabaya.

4. Morowali Industrial Zone

In the meeting at the Belt and Road Forum for International Cooperation held in Beijing in May 2017, Indonesian President Jokowi and Chinese President Xi Jinping agreed to establish an industrial zone outside Java. In addition, a power plant was established in the Morowali industrial zone in cooperation with Tsingshan Group, Bintang Empat Group, and PT Indonesia Morowali Industri Park.

The investment value amounted to US$650 million. In 2015, President Jokowi inaugurated the zone as a national strategic project and a vital national object. The Morowali Industrial Zone covers an area of 3,000 hectares and is planned to double in size in the future.

5. PT Gunbuster Nickel Industri (GNI)

The company, which is focused on the management of nickel ore natural resources, is located in North Morowali and has been in operation since 2019. Through renewable technology cooperation with China, PT GNI managed to implement Rotary Kiln Electric Furnace (RKEF) technology and produce 1.9 million nickels of processed pig iron per year, as well as ferronickel for stainless steel production.

MELINDA KUSUMA NINGRUM | SAROH MUTAYA | SUTJI DECILYA | ANANDA BINTANG PURWARAMDHONA

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