Bauxite meets smart tech: Indonesia and China deepen industrial alliance

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Indonesia is reportedly locking in industrial and technology partnerships with China as discussions with Hebei Province focus attention on smart manufacturing, strategic supply chains and downstream development of minerals such as bauxite and nickel. 

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Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, recently received a delegation from China’s Hebei Provincial Government led by Deputy Governor Zhao Chenxin to explore broader cooperation in industrial transformation and smart-technology integration.

During the meeting, Hartarto highlighted the rapidly expanding economic relationship between Indonesia and China, noting that bilateral trade volume has now grown to nearly three times Indonesia’s combined trade with Europe and the US.

Indonesia is prioritising investments capable of generating stronger employment opportunities and foreign exchange earnings, with downstream processing of minerals like bauxite and nickel.

Hartarto also mentioned several strategic economic zones being developed for high-tech industries and artificial intelligence initiatives. North Sulawesi was identified as a potentially promising data centre due to its direct connectivity with the US.

The collaboration indicates growing Chinese interest in Indonesia’s industrial expansion plans. Zhao reportedly praised the role of Indonesia’s Coordinating Ministry for Economic Affairs and reiterated Hebei Province’s commitment to encouraging more Hebei-based enterprises to expand their operations within Indonesia.

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