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China-Indonesia “Two Countries, Two Parks” Cooperation Project

China-Indonesia “Two Countries, Two Parks” Cooperation Project Fujian is the core area of ​​the 21st Century Maritime Silk Road and has close economic and trade cooperation and exchanges with ASEAN. Indonesia is a major gathering place for overseas Chinese from Fujian, and exchanges between the two sides have a long history.

In 2018, Fuqing City, a famous hometown of overseas Chinese, proposed the idea of ​​a China-Indonesia "Twin Parks" (hereinafter referred to as "China-Indonesia Twin Parks") to explore the establishment of a twin-park cooperation mechanism with industrial interconnection, facility interoperability, and mutually beneficial policies. The Chinese side takes the Yuanhong Investment Zone in Fuzhou, Fujian as the main body, and the Indonesian side takes the Bintan Industrial Park, Averna Industrial Park and Batang Industrial Park as the main body to build an international division of labor and cooperation platform focusing on the industrial chain and supply chain, and create a joint venture between China and Indonesia. The green channel for investment and trade has made the “Two Countries, Two Parks” an important platform for undertaking related cooperation projects under the “One Belt, One Road” initiative.

1. Basic situation

"Two countries, two parks" refers to a new type of production capacity cooperation method in which two sovereign countries set up parks in each other's territory and develop jointly. Combining the development strategies of the two countries and bilateral economic and trade cooperation, the China-Indonesia dual-park cooperation project aims to build the park into an economic and trade innovation based on the new development stage, implement new development concepts, build a new development pattern, and deepen cross-border cooperation for ASEAN. Develop demonstration parks; promote the creation of an innovative model of international division of labor and cooperation with stable and efficient characteristic industrial chains, supply chains, and value chains, build an important strategic channel for domestic and international dual circulation, and better implement a new round of opening-up and cooperation as a pioneer demonstration park; build A "professional, innovative, green and open" international high-end park builds a key hub for the distribution of bulk food, ingredients, fruits, meat, etc. and an important dual circulation channel. Through cooperation, we will deepen the economic, trade and people-to-people exchanges between China and Indonesia. Based on the advantages of overseas Chinese in Fujian all over the world, we will shape the brand of overseas Chinese, promote the culture of overseas Chinese, display the family ties of overseas Chinese, and promote the economic and trade innovation and development demonstration zone to become a place for new and old overseas Chinese to return to start their own businesses. It will create a new window for overseas Chinese to have close exchanges and exchanges, create a new platform for China-Indonesia service trade and investment cooperation, and create a new highland for China-Indonesia economic cooperation and high-end industrial cooperation.

At present, the Chinese-Indonesian dual-park Chinese park focuses on key areas such as marine economy, food processing, and cross-border trade, extending the industrial chain and accelerating the advancement of marine fisheries, equipment manufacturing, halal food, cold chain logistics, green mining, light textiles, etc. Industrial cooperation, and jointly create a "global fishery center" and a new highland for marine economic development with Indonesia.

2. Main practices and models China and Indonesia's "two countries, two parks" explore the establishment of a twin-park pairing cooperation mechanism with industrial interconnection, facility interoperability, and reciprocal policies. It adopts a new production capacity cooperation model in which China and Indonesia set up parks in each other's territory and develop jointly. This will help promote the complementary advantages of the two countries. It is of great significance to make full use of the superior resources of the two countries, improve the relevant industrial and supply chains of the two countries, and promote economic and trade exchanges between the two countries.

First, improve the working mechanism. The China-Indonesia Dual Park has established a China-Indonesia Joint Working Committee and a deputy ministerial (provincial) level consultation mechanism, and formed a multi-level linkage mechanism between the Ministry of Commerce, Fujian Province, Fuzhou City, and Fuqing City to coordinate and promote the construction of the park. At the provincial level, Fujian Province has established a leading group to promote the construction of "two countries, two parks", headed by the executive deputy governor and the deputy governor in charge. It has established a special work team and implemented a weekly consultation system. At the municipal level, Fuzhou City has established a work leading group and an economic and trade docking group to integrate resources in an all-round way and efficiently coordinate to promote the implementation of various tasks; Fuqing City innovates the development of "headquarters + management committee + investment company + industrial fund + think tank" Operating model, the "Two Countries, Two Parks" holding group was established to comprehensively promote the high-level standardization construction of the park.

The second is to establish a dialogue mechanism. Since 2021, the Ministry of Commerce, together with the Fujian Provincial People's Government, has promoted the establishment of a smooth dialogue mechanism with relevant Indonesian departments. On March 23, 2021, former Vice Minister of Commerce Zhang Xiangchen, together with Vice Governor of Fujian Province Guo Ningning and Indonesian Deputy Minister of Marine and Investment Coordination Oudi Karak, co-chaired the second meeting of the China-Indonesia Dual Park Joint Working Committee in a video format At a meeting, both parties jointly announced the official launch of the "Two Countries, Two Parks" joint working committee mechanism. On June 16, 2023, the Asian Department of the Ministry of Commerce and the Economic and Commercial Office of the Chinese Embassy in Indonesia, the Fujian Provincial Department of Commerce, the Foreign Affairs Office, Fuzhou City and Fuzhou Customs, and the Indonesian Ministry of Maritime Affairs held a tripartite meeting to promote the construction of dual parks between China and Indonesia. At the high-level consultation meeting, five consensuses were reached. On August 31, 2023, the second meeting of the Joint Working Committee of the China-Indonesia Dual Park was held in Fuzhou City. Representatives of the Fuzhou Municipal Government and the Indonesian Dual Park respectively proposed work matters that need to be coordinated and promoted by each other, and focused on the joint work of the park management agencies They conducted in-depth and detailed exchanges on mechanisms, preparation of park development plans, promotion of trade and investment facilitation, and supporting policies, and reached a consensus on the next step of cooperation in the construction of the park.

The third is to strengthen policy empowerment. In order to further promote the concentration of resources in the park and build the Chinese park into a policy "depression" for high-quality development, a "highland" for opening up, a "treasure land" for investment, and a "blessed land" for development, the Fujian Provincial Department of Commerce took the lead in developing a number of provincial-level special projects. At the same time, some policy measures have been obtained from national ministries and commissions, mainly involving factor guarantees, industrial policies, fiscal and taxation policies, customs clearance policies, talent policies, etc., and are currently being applied for, approved, issued and implemented according to the process. In addition, Fujian Province will also promulgate and implement the "Implementation Plan for the Construction of the China-Indonesia Economic and Trade Innovation Development Demonstration Park" and the "Provincial Special Policies and Measures for the Construction of the China-Indonesia Economic and Trade Innovation Development Demonstration Park" in the near future.

3. Results and prospects

First, it promotes the continuous expansion of investment scale in China and Indonesia. Since the approval of the dual parks between China and Indonesia, a number of major projects have been started and put into production, which has effectively enhanced the industrial carrying capacity of both parties. Since 2023, the construction of China-Indonesia "Twin Parks" has entered the "fast lane". In February 2023, the Indonesia-Fuzhou Economic and Trade Matchmaking Conference and Project Signing Event was held in Jakarta, Indonesia. 15 projects were signed with a total investment of 21.6 billion yuan; in May, China (Fujian)-Indonesia jointly built the "Twin Parks of Two Countries" and An economic and trade cooperation promotion conference was held in Jakarta, Indonesia, and 21 projects were signed on-site, with a total contract value of 43.2 billion yuan; at the China (Fujian)-ASEAN Economic and Trade Cooperation Forum held in Fuzhou on August 6, 9 more projects were signed together. The total investment involved is nearly 30 billion yuan. As of August 2023, 620 commercial and trade companies have settled in the park, with 66 investment projects, with a total investment of 90.551 billion yuan; Chinese park companies have invested in 17 projects in Indonesia, with a total investment of 39.93 billion yuan.

The second is to promote bilateral economic and trade relations to a new level. Driven by the "Two Countries, Two Parks" cooperation project, economic and trade cooperation between Fujian and Indonesia has developed rapidly. In 2022, Indonesia has become Fujian's largest trading partner in ASEAN, with import and export trade reaching 121.52 billion yuan, a year-on-year increase of 32.2%. China has remained Indonesia's largest trading partner for eight consecutive years and Indonesia's third largest source of foreign investment. Indonesia's "The Jakarta Post" published an article saying that over the past 20 years, China has been Indonesia's most important partner, especially in the fields of economic development, investment and trade. With the support of the “Belt and Road” initiative and Indonesia’s “Global Maritime Pivot” concept, China and Indonesia will strengthen cooperation in the field of infrastructure.

The third is to promote closer exchanges and cooperation between the two sides. The "Two Countries, Two Parks" cooperation project promotes maritime connectivity between the two sides, promotes investment and trade, and enhances people-to-people exchanges and cooperation. The cooperation focuses on marine fisheries, mining development, infrastructure construction, cultural tourism and other fields, and has opened up the potential for cooperation between the two parties in clean energy, new materials, textiles and other fields. At present, many Indonesian research centers have been established in Fujian, Indonesian language majors are being offered in colleges and universities, and the number of Indonesian students studying in China is increasing day by day. Educational cooperation has sown seeds for both sides to enhance understanding and promote friendly exchanges.

Judging from the later development trend, in the future, China and Indonesia will continue to be guided by the Silk Road spirit of peaceful cooperation, openness and inclusiveness, mutual learning, mutual benefit and win-win, and comprehensively strengthen the "two countries and twin parks" consultation, Co-construction and sharing achieve "mutual benefit and win-win" for both parks.

The first is to strive for greater breakthroughs in policy. In terms of optimizing investment and trade access, simplifying the registration and declaration process, establishing cross-border mutual recognition of talents, ocean fishing, aquaculture, customs clearance convenience, tax incentives, etc., policies and measures have been introduced to support the construction of Indonesian parks and attract more Chinese companies to settle in Indonesia. Square Park.

The second is to focus on supporting leading companies to expand industrial clusters. Taking marine fishery as a breakthrough point, we will cultivate the cooperative industrial chain and supply chain between China and Indonesia around the five major industries of China and Indonesia: marine fishery, tropical agriculture, light industry and textile, machinery and electronics, and green mining. Support and strengthen leading enterprises, strengthen business-based investment promotion, promote the extension and repair of chains and strengthen the chain, use the landing of leading enterprises to drive upstream and downstream enterprises to settle in, promote the expansion of two-way trade scale, and realize the development of industrial clusters in the park.

The third is to promote target matters and achieve new results. Promote the establishment of the China-Indonesia "Two Countries and Twin Parks" Industrial Cooperation Promotion Center, the establishment of a China-Indonesia "Two Countries and Twin Parks" customs joint working group, and the establishment of a China-Indonesia customs coordination mechanism to facilitate the customs of both parties to strengthen communication, collaboration and mutual assistance. (Source: Rural Economic Research Center of the Ministry of Agriculture and Rural Affairs)