The bilateral relations began to ease since 1980s. Foreign Minister Qian Qichen of China met with President Suharto and State Minister Moerdiono of Indonesia in 1989 to discuss the resumption of diplomatic relations of the two countries. In December 1989, the two sides held talks on the technical issues regarding the normalization of bilateral relations and signed the Minutes. Foreign Minister Ali Alatas of Indonesia visited China on invitation in July 1990 and the two sides issued the Agreement on the Settlement of Indonesia's Debt Obligation to China and the Communique on the Resumption of Diplomatic Relations between the two countries. The two countries issued the "Communiqué on the Restoration of Diplomatic Relations between the Two Countries".
Premier Li Peng visited Indonesia on invitation in August 6, 1990. In his talks with President Suharto, the two sides expressed their willingness to improve relations between the two countries on the basis of the Five Principles of Peaceful Co-Existence and the Ten Principles of the Bandung Conference. On 8 August, Foreign Ministers of China and Indonesia on behalf of their respective governments, signed the Memorandum of Understanding on the Resumption of Diplomatic Relations. The two sides declared the formal resumption of the diplomatic relations between China and Indonesia on that day.
The bilateral relations developed gradually since the resumption of diplomatic relations of the two countries. Since the resumption of diplomatic ties between the two countries, President Yang Shangkun (in 1991), Chairman of NPC Standing Committee Qiao Shi (in 1993) and Vice Premier Zhu Rongji (in 1996), Vice President Hu Jintao (in 2000) of China visited Indonesia. President Suharto (in 1990), Speaker of Parliament Suhud (in 1991), Vice President Sudarmono(in 1992) and Chairman of the Supreme Advisory Council Sudomo (in 1997) visited China. President Jiang Zemin of China paid a state visit to Indonesia in November 1994 after he attended the second APEC Leaders' Informal Meeting. In December 1999, President K.H. Abdurrahman Wahid of Indonesia paid a state visit to China, during which the two countries issued a joint press communiqué. In July 2000, Vice President Hu Jintao visited Indonesia at the invitation of Vice President Megawati.
In November 2001, Premier Zhu Rongji paid a visit to Indonesia. In March 2002, Indonesian President Megawati Sukarnoputri paid a state visit to China. In April, President Abdurrahman Wahid of the Indonesian People's Consultative Assembly visited China. In September, Chairman Li Peng of the NPC paid an official friendly visit to Indonesia.
Starting from 1991, the foreign ministries of the two countries set up a consultation mechanism and up to now it has held six times of consultation. In March 2002, the two countries exchanged notes in regard with the setup of Indonesian consulates general in Guangzhou and Shanghai. Indonesia has its Consulate-General in Hong Kong.