Indonesia targets Chinese investment in SEZs to boost technology transfer

The Indonesian government is directing Chinese investment within Special Economic Zones (SEZ) to strengthen national industrial capacity, research, human resources, and technology transfer. Ali Murtopo Simbolon, Acting Secretary General of the National Council for SEZ, stated that Indonesia offers a secure environment for academic development and industrial collaboration amidst global uncertainty.

Currently, Indonesia manages 25 SEZs covering approximately 23,797 hectares, with cumulative investments of about $20.7 billion. As of the second quarter of 2026, Chinese companies account for approximately 20 percent of the business entities operating within these zones. Cooperation is being facilitated through the Two Countries Twin Parks (TCTP) initiative to integrate Indonesian market potential with Chinese technological capacity.

In conjunction with these economic goals, the Tsinghua Southeast Asia Center (TSEA) and Tsinghua University, alongside Indonesian ministries, hosted the China-Southeast Asia Forum on Higher Education and Industry Cooperation 2026 in Bali. The forum aims to foster connectivity supporting the Belt and Road Initiative by bridging academia, government, and industry to drive innovation and economic transformation.