TAIPEI (Taiwan News) – Taiwan will continue to intensify its economic and trade ties with Indonesia to reduce its reliance on China, the deputy Taiwan envoy in Jakarta said Friday (Sept. 13).

Indonesia is rich in natural resources, while Taiwan has cultivated a significant level of talent, leading the two economies to show a high degree of compatibility, according to Chen Sheng-peng (陳盛鵬), deputy chief at the Taipei Economic and Trade Office in Indonesia (TETO). He said there were talks between the two sides at the vice-ministerial level, and between the private sector and government for sectors including foods and steel, per CNA.

Indonesia was Taiwan’s 14th largest trading partner, with the total volume of trade in 2023 reported at US$10.42 billion (NT$333.36 billion). There was still significant room for growth, Chen said.

Taiwan is still 40% reliant on trade with China, which could be reduced by developing further opportunities with Indonesia, according to the diplomat. He also noted that Indonesia was the only nation in Southeast Asia to be a member of the G20. The country was also one of 18 included in Taiwan’s New Southbound Policy promoting economic, cultural, educational, and other ties.

Chen told reporters about a visit to Taiwan during the COVID-19 pandemic by Indonesia’s then-Investment Minister Bahlil Lahadalia. The minister never left his hotel, but the Foxconn Technology Group sent a delegation to discuss investments in Indonesia’s EV sector with him, Chen said, emphasizing the importance of international investment.

Indonesia possesses raw materials Taiwanese businesses need and a low-cost workforce, he said.