China's island province Hainan primed for greater cooperation with Indonesia

HAIKOU -- As China's economy continues to recover from the impact of COVID-19, the southernmost island province of Hainan is intensifying efforts to explore business opportunities globally and revitalize its foreign trade.

Among the countries at the top of the list is Indonesia, the province's largest ASEAN trading partner. Trade volume between the two sides surpassed 10 billion yuan ($1.46 billion) in 2022, three times that of 2020.

Seizing the opportunity presented by the 10th anniversary of the China-Indonesia comprehensive strategic partnership, Hainan is taking the lead in promoting cooperation between the two countries by fostering collaboration in the areas of tourism, trade and culture.

In late January, a business delegation from Hainan went to the Indonesian capital Jakarta where it inked an initial cooperation agreement with Kapal Api Global, a local leading food and beverage company.

The company, the largest Indonesian coffee business, has decided to participate in the third China International Consumer Products Expo, to be held in April this year in Hainan.

This move is aimed at exploring potential collaborations that may involve the establishment of coffee factories, trade settlement, and product processing, according to the company.

Highlighting Hainan's ever-growing business potential, Liu Rutao, deputy director of the Hainan Provincial Bureau of International Economic Development, said the preferential tax policy of Hainan Free Trade Port (FTP), especially in the import of raw materials, equipment and value-added processing products, is among an array of measures aimed at widening economic cooperation with global enterprises in trade, investment and factory construction.

On Feb 17, the delegation held another promotional event in Jakarta, which was described by Chinese Ambassador to Indonesia Lu Kang as the "Hainan moment" for the advancement of China-Indonesia relations.

Lu expressed optimism about the prospects of deepened cooperation between the two countries in the future.

Hainan has a historical link and close relationship with Indonesia, and cooperation conforms with the interests and wishes of the two peoples to strengthen economic, trade and cultural exchanges, said Shen Xiaoming, secretary of the Hainan Provincial Committee of the Communist Party of China, at a meeting early this month with Djauhari Oratmangun, Ambassador of Indonesia to China.

Djauhari Oratmangun hailed the construction of Hainan FTP as a rosy prospect, expressing hopes for deepened cooperation with Hainan and broader development featuring more fruitful cooperation.