To avoid high US tariffs, Chinese companies are planning to expand their operations or set up new entities in Indonesia. The US imposes tariffs of over 30% on Chinese goods, while tariffs on goods from Indonesia, Malaysia, the Philippines, and Thailand are 19%, and 20% on Vietnamese goods. Chinese companies have a strong interest in investing in Indonesia, with a surge in inquiries and registration demand across industries such as toy manufacturing, textiles, and electric vehicles. Large industrial zones in Indonesia (such as Subang Smartpolitan in West Java, covering over 2,700 hectares) have received numerous inquiries from Chinese investors. Indonesia has a massive consumer market, and it is believed that capturing the Indonesian market is equivalent to capturing half of Southeast Asia, enabling companies to achieve net profit margins of 20%–30%.
Real estate prices in Indonesia have also risen. For example, the annual rent for a four-story office building in Jakarta has increased by 43% compared to last year. In the first half of 2025, investment from Mainland China and Hong Kong SAR into Indonesia grew by 6.5% year-on-year, reaching $8.2 billion. During the same period, Indonesia's total Foreign Direct Investment (FDI) rose by 2.58% to IDR 432.6 trillion, and the government expects investment to continue growing in the second half of the year. The founder of industrial consultancy PT Yard Zeal Indonesia stated that the company is busy with strong demand for industrial zones. The head of Industrial and Logistics for Colliers International Indonesia noted that Chinese companies are in a hurry to find land and buildings ready for immediate use. A Chinese entrepreneur operating a motorcycle headlight business in Indonesia is optimistic about the market potential.
To avoid high US tariffs, Chinese companies are planning to expand their operations or set up new entities in Indonesia. The US imposes tariffs of over 30% on Chinese goods, while tariffs on goods from Indonesia, Malaysia, the Philippines, and Thailand are 19%, and 20% on Vietnamese goods. Chinese companies have a strong interest in investing in Indonesia, with a surge in inquiries and registration demand across industries such as toy manufacturing, textiles, and electric vehicles. Large industrial zones in Indonesia (such as Subang Smartpolitan in West Java, covering over 2,700 hectares) have received numerous inquiries from Chinese investors. Indonesia has a massive consumer market, and it is believed that capturing the Indonesian market is equivalent to capturing half of Southeast Asia, enabling companies to achieve net profit margins of 20%–30%.
Real estate prices in Indonesia have also risen. For example, the annual rent for a four-story office building in Jakarta has increased by 43% compared to last year. In the first half of 2025, investment from Mainland China and Hong Kong SAR into Indonesia grew by 6.5% year-on-year, reaching $8.2 billion. During the same period, Indonesia's total Foreign Direct Investment (FDI) rose by 2.58% to IDR 432.6 trillion, and the government expects investment to continue growing in the second half of the year. The founder of industrial consultancy PT Yard Zeal Indonesia stated that the company is busy with strong demand for industrial zones. The head of Industrial and Logistics for Colliers International Indonesia noted that Chinese companies are in a hurry to find land and buildings ready for immediate use. A Chinese entrepreneur operating a motorcycle headlight business in Indonesia is optimistic about the market potential.