Indonesia is looking to China as a model for development as the two nations mark 75 years of diplomatic relations. This assessment comes from Professor Heri Hermansyah, Rector of Universitas Indonesia, who highlighted the growing strategic scope of the partnership between the two countries.
Strengthening Economic Ties
Currently, China is Indonesia’s largest trading partner, with bilateral trade reaching $147.8 billion in 2024—a 6.1% increase from the previous year. China is also Indonesia’s second-largest source of foreign direct investment, supporting projects in infrastructure, green technology, and the digital economy. Professor Hermansyah believes future cooperation should prioritize education and innovation alongside these existing economic foundations.
A New Capital and a National Vision
Indonesia’s ambition to become a top five global economy by 2045 is closely tied to the relocation of its capital from Jakarta to Nusantara, a new smart city in East Kalimantan. This move is intended to foster equitable and innovation-led development. Professor Hermansyah emphasized the crucial role of universities in leading education, research, and innovation to achieve these goals.
He specifically noted that China’s experience in building modern cities and tech ecosystems offers valuable lessons for Indonesia. The Nusantara project, in particular, presents opportunities for collaboration in sustainable urban development, digital governance, and green infrastructure.
Integrating Industry and Academia
Professor Hermansyah, who attended the World University Presidents Forum in Hangzhou in 2025, praised institutions like Zhejiang University for successfully translating research into technological advancements and startup culture. He believes Indonesia can benefit from a similar model of integrating universities with industry to support both Nusantara and broader national industrial transformation.
As a chemical engineer, Hermansyah also highlighted the need for Indonesia to develop its domestic processing capabilities for resources like nickel, palm oil, and coal. He believes technology transfer and cooperation with China could accelerate this transition.
Fostering Cultural Exchange
Increased people-to-people exchanges are already strengthening ties between the two nations, with hundreds of student and faculty exchanges currently underway. Professor Hermansyah advocated for expanded dual-degree programs, envisioning a future generation equipped to bridge cultural and professional gaps and contribute to initiatives like Nusantara.
Looking ahead, Hermansyah expressed optimism, framing education as the foundation for sustained progress. He concluded that investing in human capital, research, and innovation will benefit both Indonesia and China for decades to come.
Frequently Asked Questions
What is the Golden Indonesia 2045 vision?
The Golden Indonesia 2045 vision is a national roadmap to transform Indonesia into one of the world’s top five economies by its independence centenary.
Where is Nusantara located?
Nusantara, the new capital city of Indonesia, is located in East Kalimantan on the island of Borneo.
What role does China play in Indonesia’s development?
China is Indonesia’s largest trading partner and second-largest source of foreign direct investment, with projects spanning infrastructure, green technology, and the digital economy. Professor Hermansyah suggests China also offers a valuable model for educational and industrial development.
As Indonesia pursues its ambitious economic goals and undertakes a historic capital relocation, how might increased collaboration with China shape its future trajectory?
