The government will finalize the list of countries included in the provision within one month, according to a statement.
Minister Sandiaga Uno said the president had instructed the government to consider the visa waiver as a means of boosting the economy, tourism visits and investment.
There were more than 16 million foreign arrivals in Indonesia in pre-pandemic 2019, according to official data.
From January to October this year, Indonesia received 9.49 million foreign visitors, an increase of 124.3% from the same period in 2022.
Indonesia is the latest country in Southeast Asia to consider waiving visas for China, a major travel market, following Singapore, which on Thursday said a 30-day mutual visa exemption with China will be implemented early next year.
Thailand and recently Malaysia have also waived visas for visitors from China and India.