The Indonesia Association of Toys signed a strategic cooperation deal with Guangdong Chaoyu Exhibition Co Ltd on Thursday night, with an aim to attract more Chinese companies to set up production facilities in the world's fourth-most populous country in the following years.

The cooperative deal was jointly signed by Sutjiadi Lukas, Chairman of Indonesia Association of Toys and Jason Chen, general manager of Guangdong Chaoyu Exhibition Co Ltd, after Lukas announced the opening of a representative office in the Guangdong provincial capital on Thursday.

"We hope to be able attract more Chinese companies and manufacturers to arrive in Indonesia to set up their subsidies and production facilities, to jointly develop the country's toy market which has great potential," Lukas said.

"About 5.5 million babies are born each year in Indonesia, so the market for children's toys is huge," Lukas told China Daily.

"Meanwhile Chinese companies would be able to further explore the whole Southeast Asian market by joining hands with Indonesian companies," he said.

Daniel Johan, a member of the Indonesian parliament, said Indonesia and China have a very long history of economic cooperation.

"Indonesia is expecting more Chinese companies to help promote the country's industrial development and upgrading through expansion of investment and trade cooperation between the two nations, further developing the Southeast Asian market under China's Belt and Road Initiative," he said.

Indonesia now has a population of more than 250 million. Of them, more than 65 million are children under 14. And the country is the largest economy in the Association of Southeast Asian Nations.

According to Jason Chen, his company will organize the Indonesia International Toys and Kids Expo at the Jakarta International Expo in July to help Chinese companies further explore the Indonesian market and increase their presence in the Southeast Asian nations.

Covering area of more than 5,000 square meters, the July 26 to 28 event is the largest ever toy show in Indonesia, he said.