Story perspectives

Indonesia and China Expand Defense Cooperation With Joint Drills

8/22/2026

Summary

Indonesia, China Deepen

Indonesia and China agreed to deepen defense cooperation with joint exercises, personnel exchanges, and industry projects.
The pact follows a joint naval drill east of Taiwan held last Wednesday.
Both sides pledged to develop AI and communications satellites.
Defense ministers said cooperation will extend beyond equipment procurement to domestic capability building.
Indonesia invited Chinese forces to future exercises, including the Heping Garuda drill.

Summary

Chinese firms protest

Chinese firms warned Indonesia’s higher taxes and new nickel pricing formula threaten profitability.
Chinese nickel processing investment reached $3.9 billion in the first half of 2026.
The China Chamber of Commerce in Indonesia accused local authorities of over-enforcement, corruption and extortion.
Taiwan’s Mainland Affairs Council called the planned China-Indonesia naval maneuvers a provocation threatening regional stability.
Indonesia’s navy said the exercise was a routine PASSEX in international waters under UNCLOS 1982.

History

Historical Context

Since ASEAN’s 1976 charter promoted regional peace, the ASEAN Regional Forum—an informal 27-member security dialogue—has long served as a platform for confidence-building among Indonesia, China, the United States and others. That framework later enabled the 2023 Indonesia-China defense pact and joint PASSEX drills, prompting nearby states such as Taiwan to voice maritime-stability concerns.

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Indonesia, China Deepen

Indonesia and China agreed to deepen defense cooperation with joint exercises, personnel exchanges, and industry projects.
The pact follows a joint naval drill east of Taiwan held last Wednesday.
Both sides pledged to develop AI and communications satellites.
Defense ministers said cooperation will extend beyond equipment procurement to domestic capability building.
Indonesia invited Chinese forces to future exercises, including the Heping Garuda drill.

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