Introduction

Indonesia has consistently supported the One China policy, which views the Republic of China (Taiwan) as an inseparable part of the People’s Republic of China (China).

Recently, however, several countries have questioned the essence of the One China policy and challenged the United Nations Resolution 2758, which views the latter as “the only legitimate representative of China to the United Nations.” This Resolution, which was passed in 1971, consequently removed Taiwan’s seat.

These countries maintain that the Resolution does not restrict Taiwan’s participation at the United Nations and objects to the notion that China could assert authority over Taiwan, although rising geopolitical tension might have encouraged such a position.

The Netherlands and the European Parliament are of the position that the Resolution does not entail Taiwan’s exc

Although these are the stances of certain European countries, their arguments are nonetheless valid and need to be taken into consideration.

Since the adoption of the Resolution, China has been actively promoting the “One China, Two Systems” principle, despite differing interpretations by both nations. Even in Taiwan, the two largest political parties – the Kuomintang (KMT) and the Democratic Progressive Party (DPP) – have distinct China engagement policies.

DPP, for instance, is pro-independence from China. Its victories in the 2016 and 2024 elections incited concerns on the mainland’s part, which has pursued the agenda of reunification. In response, DPP has consistently sought international support to enhance legitimacy and reduce its dependence on China, including in the economic sphere.

In 2016, for example, then president Tsai Ing-wen introduced the New Southbound Policy (NSP) to diversify Taiwan’s economic partners. More recently, Vice President Hsiao Bi-Khim made a rare speech in Brussels, echoing Taiwan’s values of democracy and pleading for international support.

Instances such as this have worsened relations between the two. In response, Beijing has undertaken multiple steps to lessen Taiwan’s legitimacy, such as influencing Taiwan’s allies to cut off diplomatic relations. In 2019, the Solomon Islands announced it recognises only China, prompting Tsai to state that China used dollar diplomacy to shake Solomon’s decision. Similarly, in 2024, Nauru cut off diplomatic ties with Taiwan in favour of China.

Between China and Taiwan

With mounting pressure to reinterpret the Resolution, Indonesia would be inadvertently pressured to revisit the matter as well.

Indonesia has diplomatic relations with China but also acknowledges Taiwan as a nation. Indonesia’s relationship with China has varied in history, marked by strong political ties during the Soekarno years that were suspended following China’s alleged involvement in the 1965 tragedy. Ties were restored in 1990 and have seen an upward trend since. On the other hand, Indonesia and Taiwan agreed to establish the Taipei Economic and Trade Office (TETO) in Jakarta, though this does not function as a normal embassy.

In his first overseas visit, President Prabowo Subianto reaffirmed Indonesia’s relationship with China, rehashing Indonesia’s stance with regard to Resolution 2758 and supporting China’s efforts to achieve a peaceful reunification with Taiwan. These are consistent with his predecessor’s policy, which also subscribed tosupported the One China policy. 

Indonesia and China have extensive economic relations. In 2024, Indonesia received the highest amou

At the same time, Indonesia seeks to m

Trade volume between Indonesia and Taiwan in 2024 was US$10.8 billion, far below that with China. Meanwhile, Taiwan’s investment in Indonesia, by 2024, reachedamounted to US$184 million, primarily in the tech sector.

At the same time, people-to-people relations have also improved; Taiwan hosts students who attend many top-ranked Taiwanese universities that charge lower tuition costs than European and American universities do. Taiwan is also home to Indonesian migrant workers. In 2025, the number of Indonesian migrant workers reached 313,000, up from 2024, making it one of the top sending countries for three years in a row.

Indonesia’s Stance

With the ongoing push to reinterpret the Resolution, Indonesia may soon find its position precarious, albeit marginally, especially if the geopolitical tension involving China worsens.

It would be challenging to expect countries with strong political, economic and sociocultural links to China to revise their position. They might, nonetheless, face a dilemma in which they are forced to choose between China and those seeking to reinterpret the Resolution.

The difficult position does not emanate from diplomatic or non-diplomatic relations but from pragmatic considerations. 

Since Prabowo took office, his foreign policy has demonstrated Indonesia’s intent to get closer to China. In January 2025, Indonesia officially joined BRICS, despite the previous administration’s intent to join the Organisation for Economic Co-operation and Development (OECD) instead for its economic benefit.

By aligning closer with the Global South, especially Russia and China, Prabowo might have intensified the previous administration’s inclination to grow closer to these countries. A case in point: despite violent riots spreading across Indonesian cities in late August, Prabowo still made an effort to attend the 2025 China Victory Parade a few days later.

Furthermore, a leaked conversation between Prabowo and Minister of Defence Sjafrie Sjamsoeddin pointed towards the former’s commitment to mainta

Conclusion

These signs suggest that, under Prabowo’s leadership, Indonesia aims to consistently adhere to the One China policy, despite Taiwan’s efforts to rally international support. This seems to be motivated more by pragmatic considerations than a strict observation of an international norm.

Indeed, Indonesia’s position is intertwined with China’s that it is almost impossible to imagine a scenario whereby Indonesian policymakers would seek to revise this. However, this does not mean that the country cannot extend its diplomatic hands and support to Taiwan, albeit with certain constraints. Despite the awkwardness that the One China policy creates, Indonesia would always welcome cooperation with Taiwan, such as through the NSP umbrella. Finally, amid growing tensions between Japan and China over Taiwan, Prabowo will likely be pragmatic and avoid meddling in China’s internal affairs. Although the call to revisit Resolution 2758 might come in the future, Indonesia will certainly approach the subject wit

Introduction

On Indonesia’s latest Independence Day celebration (17 August 2023), Ambassador Lu Kang of China congratulated the country

This claim is pegged up by facts. Last ye

Despite the solid ties, both countries have faced many challenges in the course of their bilateral relations. These range from the unresolved contestation over the South China Sea, conflicts between Indonesian and Chinese workers in several sectors and the narrative of a debt trap, whether it is right or not.

It is noteworthy that the bilateral relations remain strong and growing despite some presence of anti-China sentiment in Indonesia, which has been fueled by some events in the past. These include the 1965 coup d’etat attempt, the entry of large number of Chinese workers into Indonesia during the pandemic and the ongoing persecution against Muslim Uyghurs by the Chinese government. The recent Rempang incident was particularly notable, as Xinyi Group of China wishes to invest in and develop a glass factory there, but only at the cost of the local residents.

China has struggled to address its economic performance in the past few years, even as pundits argue that China may have lost its economic miracle, which affects its economic ties with Indonesia. Desmond Lachman argues that China’s economy depends on the property sector (which represents 30% of its economy) and household wealth (at nearly 70%). Roughly, those sectors have collapsed since the pandemic, such as displayed by the defaulting of Evergrande, one of the wealthiest real-estate companies in China. I

As the dark cloud gathers, it becomes increasingly important for Indonesia to diversify its economic partners beyond just focusing on China.

Taiwan is a good option. Taiwan’s gross domestic product grew by almost twofold from 2019-2021, though there has been pessimism over its economic performance this year. Taiwan is also a player in the critical technology sector that will play a major part in the future. One of the Taiwanese industries is Taiwan Semiconductor Manufacturing Company (TSMC), which could contribute 15% to Taiwan’s GDP and ranked 8^th as the most valuable venture in the world.

Besides, an engagement with Taiwan may be less likely to attract negative attention from the public, which may be influenced by the existing anti-China sentiment. This is because Taiwan is decoupled from China’s ambition over the South China Sea, the mistreatment of Muslim Uyghurs and the assumption that Chinese workers are taking over jobs in Indonesia.

Taiwan over China?

Although Indonesia does not recognise Taiwan as a country due to the One China Policy, both countries have seen significant growth in trade. In 2020, for example, the trade value reached US$4 billion, climbing to US$8 billion in 2022.

It was followed by Taiwan’s exports. In 2021, imports of Taiwanese products reached US$4,350 million, a 17.89% increase from the previous year. In addition, Taiwan contributed 2.66% of the total exports to Indonesia and ranked 9^th as Indonesia’s top exporter, with a value at US$484 million in 2022. Taiwan’s exporting products were supplied by telecommunication equipment, thermionic tubes, cold cathodes, photo cats, embroidered or knitted materials and others.

Investment figures have increased as well. In 2021, Taiwan recorded an investment worth US$316.9 million, an increase from US$149.1 million in 2016.

This expansion of investment volume has been facilitated by the combined force of the Go South policy (introduced in the early 1990s) and President Tsai Ing-wen’s New Southbound Policy (NSP), which targets engagement with Southeast Asian countries, especially Indonesia. Through this positive trend, the Taiwanese government also firmly committed that Taiwan will restore its ties with Indonesia, whereby in 20 years ago, Taiwan was the second largest investor in Indonesia.

To update their relations and communication intensively, both countries have agreed to organise some events. These include the Indonesia Investment Business Opportunities Seminar held in Taipei, Taiwan’s participation in Trade Expo Indonesia, Indonesia’s coffee promotion at the Taipei International Coffee Show and tourism promotion at the Tainan Tourism Table Top Business Meeting, as well as Indonesia’s promotion of its halal industry and participation at the Taiwan Culinary Exhibition.

Recently, some of Taiwanese companies have also relocated to Indonesia. In 2020, Meiloon, a Taiwanese audio system manufacturer, officially relocated to Subang, West Java, from Suzhou in China. As reported by the Investment Coordinating Board (BKPM), Meiloon is one of the seven companies that have pledged to relocate to the country. Meiloon pledged to invest US$90 million and unveiled a job field for more than 8,000 workers.

Some food companies, such as Ecoffee, have also expanded to Indonesia. It has been argued that the demand for food products has declined in Taiwan due to a similar decline in the number of young populations. Indonesia, with its large group of youths, is naturally see

Another example is Hon Chuan (THC), a plastic packaging firm, which opened two more sites in Indonesia in the past few years, one in Manado (2019) and another in Cibitung (2020).

Taiwan’s High Tech: Helping Ind

Taiwanese technological companies have also expanded to Indonesia. This step seems to be taking advantage of Indonesia’s plan to adopt a greener economy and develop its technology industry.

Foxconn Technology Group, the world’s largest electronic components maker, is collaborating with Gogoro, a Taiwanese company, to develop two-wheeled electric scooters. In June 2022, Foxconn was estimated to bring US$8 billion worth of investment to the Batang Integrated Industrial Area. The company also signed a memorandum of understanding (MoU) with Indonesia Battery Corporation (IBC), Indika Energy and Gogoro to develop the electric vehicles ecosystem.

On modern technologies, TenMax, a Taiwan-based artificial intelligence firm, announced to open of its office in Indonesia. By having over 50 Al engineers, TenMax is expected to solve reinforce the business operations of Gojek, an Indonesian unicorn.

Additionally, Taiwanese health company, Imedtac, planned to assist by cooperating with local partners to advance and integrate medical devices. It aimed to combine Al and the Internet of Medical Things (IoMT), enabling patients’ data to be accessible in real-time.

Conclusion

By seeing the Taiwanese venture’s contribution, Indonesia must not depend on its economic policy on China. Nowadays, Taiwan is one of the world’s leading producers of information and communication technology products. In addition, the Taiwanese government strengthened the slogan “Make Taiwan Innovative, Inclusive and Sustainable,” which would increase its move to advancing its technology.

Therefore, Indone