China–Indonesia relations

The People's Republic of China (PRC) and Indonesia established diplomatic relations in 1950, and re-established relations in 1990 following a break in 1967. For many centuries, the two regions were largely tied together through informal trade. Under Sukarno’s presidency, relations with China deepened. In the early 1960s, Sukarno embarked on a series of foreign policies under a banner of anti-imperialism and a personal championing of the Non-Aligned Movement. These developments led to increasing friction with the West and closer relations both with the China and the Soviet Union. Sukarno's Guided Democracy relied on two conflicting pillars of support, the military and the Communist Party of Indonesia (PKI). He favored the latter, which grew to be the largest political party with 3 million members and in August 1965, Sukarno declared his intention to commit Indonesia to an anti-imperialist alliance with China and other communist regimes and warned the military not to interfere.

The military, nationalists, and Muslim groups objected to the prominence of the PKI, fearing the imminent establishment of a communist state in Indonesia and regarded Sukarno's close alliance with China as compromising Indonesia's sovereignty. This culminated in the progressive sidelining and eventual ousting of Sukarno from 1965 until 1967 by Suharto and his supporters, who instigated a prolonged persecution and eventual elimination of the PKI with estimates of killings varying from 500,000 to 1 million. In 1967, Suharto introduced orders banning Chinese literature, culture and characters, encouraging the abandonment of Chinese names and suspended diplomatic relationships with the PRC, to be restored only in 1990.

An important factor in relations is the small, only 3% of the population, but long-established and economically influential Chinese diaspora. This group has been keen to take advantage of trading opportunities with China, which has become Indonesia's biggest trading partner since the signing of the Indonesia-China Strategic Partnership in 2005. Trade flows increased steadily, turning in 2008 into a rising trade deficit for Indonesia. Two-way investment was boosted by President Joko Widodo and Chinese leader Xi Jinping’s close personal relationship, leading to a surge in investment under China's Belt and Road Initiative (BRI). Inbound investment from China, including Hong Kong, in 2019–2020, ranked second after Singapore. Both countries are among the largest nations in Asia in terms of both area and population. China is the second-most populous nation in the world, while Indonesia has the 4th largest population. China is Indonesia's largest trading partner. The annual trade between China and Indonesia was $135 billion as of 2024.

China has an embassy in Jakarta and consulates in Surabaya and Medan, while Indonesia has an embassy in Beijing and consulates in Guangzhou, Shanghai, and Hong Kong. Both nations are members of the APEC, BRICS and the G20.