This report analyzes the position and policies of Indonesian foreign trade and economy. Currently,Indonesian government has adopted an active trade policy. Actions showing this policy attitude include adjusting import tariffs,implementing preferential tariffs in special economic zones,implementing export preferential policies,simplifying export examination and approval procedures,attracting export-oriented foreign investment,and relaxing foreign-invested areas. Meanwhile,it should also be noted that some long-standing trade barriers still existed,such as tariff barriers to impose 20% export tax on some commodities,restricting the import of fresh fruits and vegetables. In terms of non-tariff barriers,Indonesia mainly employs import quota and religious and technical means to set some barriers. As for China-Indonesian bilateral trade,the import of poultry and poultry products from China is prohibited,and there are also some underlying obstacles to Chinese enterprises for obtaining tax relief in the FTA. Nevertheless,recent effort of Indonesian government to strengthen foreign trade and economy shows it determination to construct a more opened economy. This trend is in line with Chinese “Maritime Silk Road” initiative,which indicates opportunities and great strategic significance to expand bilateral trade and investment collaboration. To achieve this goal,Indonesia government need to make more efforts to coordinate policies among foreign trade and domestic development,among different government departments,among central and local governments. Foreign investor and trader also need to make more communication efforts at different levels.