Indonesia Becomes Preferred Overseas Investment Location for Chinese Enterprises

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sth that one relies onThe world's largest nickel reserves,Rejuvenated labor resourcesas well asContinuous optimization of investment policiesIndonesia has become the center of Chinese companies' overseas industrial and energy investments.destination of choice. Data from China's General Administration of Customs show thatChina-Indonesia bilateral trade reaches $150.3 billion in first 11 months of 2025, has exceeded the total trade for the whole of 2024. Indonesia's implementation of theDownstream industrial strategy, requiring mineral resources to be processed indigenously rather than exporting raw minerals directly, which happens to provide China with aStabilized sources of supply of key mineralsrespond in singingStrategic Manufacturing BaseThe

Electric Vehicle Industry ChainIt's the cooperation between the two countries.Core areas.2025 In June, a consortium of companies led by a subsidiary of Ningde Times, a leading Chinese battery company, launched aProjects with an investment of up to $6 billionThe company covers nickel mining to battery production.full process. Upon completion, the project is expected to meet the annualBattery requirements for 300,000 electric vehiclesCreate8,000 direct jobsrespond in singing35,000 indirect jobsThe demand for electric vehicles in Indonesia is surging at the same time. At the same time, the demand for electric vehicles in Indonesia has surged.Pure electric vehicle sales up 2,671 TP3T year-over-year to 35,749 units in H1 2025whichChinese brands dominateThe

population structureis another of Indonesia's great strengths. The countryMedian age of population below 30 years, both formedHuge consumer marketIt also providesAdequate youth labor forceIn addition, in recent years, Indonesia has been a leader in the field of human rights. In addition, in recent years Indonesia hasContinuous reduction of market access thresholds and streamlining of the approval process, as a way to attract foreign investment. Indonesia's tariff trade agreement with the United States.Final tariff rate as low as 19%The advantage of having the lowest level among the Southeast Asian countries makes it theAttractive export hubThe

Cooperation between the two countries also extends toRenewable energy sector. Indonesia is currently highly reliant on coal, but plans toNet zero emissions by 2060, Chinese companies are helping this goal with several infrastructure projects. The joint development by CEC and Indonesian state-owned enterpriseLumutbale II Geothermal ProjectThis is exemplified by the project, which commenced commercial operations in July 2025 and could provide80,000 households supplied with electricityThe annual reduction in CO2 emissions is equivalent toPlanting 12 million treesThe

Indonesian government data show thatChinese investment in Indonesia totaled $35.3 billion from 2020 to the first half of 2025, with an average annual growth rate of 31%Main flows of investmentEnergy, manufacturing, logistics and digital technologiesThe cooperation between China and Indonesia has now gone beyond the traditional trade area and is now moving towards the areas that are crucial for the upgrading of Indonesia's industries. Nowadays, China-Indonesia cooperation has gone beyond the traditional trade scope and is moving towards theDeep Industrial IntegrationStep forward forCooperation among large developing countries of the global SouthProvides a practical blueprint.

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