Chinese Oil and Chemical Giant Invests in Indonesia to Drive Enterprise Development
Zanyu Technology, as a leading domestic oil and chemical company with a capacity of 1.08 million tons per year, has a significant advantage at its Indonesia Dukuda base, which serves as the main source of the company's performance. Indonesia imposes high export tariffs on crude palm oil (CPO) but does not levy tariffs on refined processed products such as fatty acids. The Dukuda base purchases palm oil locally and exports refined processed products, gaining a clear tariff cost advantage. Indonesia's export tariff on CPO is an ad valorem tax; the higher the CPO price, the higher the tariff, and the more pronounced the base's tariff cost advantage, leading to higher per-ton profitability. The company's historical performance is positively correlated with CPO prices. The growth of Indonesia's palm oil plantation area is slowing, and aging trees
Chinese Construction Machinery Enterprises Invest in Developing Indonesian Market
Chinese Company Invests IDR 649 Billion in Textile Factory Construction
China-Indonesia Enterprise Cooperation in the Automotive Charging Sector
Chinese automobile brands are deploying in the Indonesian market
Chinese enterprises are deploying to develop Indonesia's aluminum downstream industry
The Ministry of Energy and Mineral Resources recently stated that multiple Chinese enterprises have begun to focus on Indonesia's aluminum industry, which is expected to promote the previously stalled bauxite downstream processing. These Chinese companies have invested in the downstream bauxite sector, and some are planning to expand into aluminum smelters. Shandong Nanshan Aluminum has invested in the Galang Batang Special Economic Zone on Bintan Island, China Hongqiao Group has invested through PT Well Harvest Winning Alumina Refinery in West Kalimantan, and some companies are planning to expand into aluminum smelters. Indonesia's bauxite reserves are about 7.4 billion tons, of which 2.7 billion
Chinese Enterprises Sign Collaboration Contracts Exceeding 3 Billion Yuan
Huadian Engineering Co., Ltd., a subsidiary of China Huadian Corporation, signed the Nusalaya Project System EPC+OM contract with Indonesia's PT Sembada Makmur Sejahtera, with a total contract value setting a new record for overseas projects. Under the contract, Huadian Engineering will provide design, supply, and construction services for a coal stockyard and long-distance conveying system for the Nusalaya project, with a total contract value of approximately 2.516 billion yuan. It is expected to be ready for coal conveying by July 30, 2027. After project completion and acceptance, Huadian Engineering will provide 12 years of operation and maintenance services to the owner.
Hongqi Plans to Enter the Indonesian Automotive Market
PT IMG Sejahtera Langgeng, a subsidiary of PT Indomobil Sukses Internasional Tbk, has signed a cooperation agreement with China FAW Group Import and Export Co., Ltd. Under the agreement, IMGSL will be responsible for the distribution of complete vehicles and parts for Hongqi (Red Flag) vehicles in Indonesia, including after-sales services. The Hongqi brand was launched in 1958 and has served as the official car for Chinese leaders and state events, symbolizing China's automotive industry. In the late 1970s, it transitioned to market orientation, and after launching a new design strategy in 2018, its sales and global exports have gradually increased.
Chinese-funded enterprises drive development of local SMEs in Indonesia
The Morowali Industrial Park (IMIP) has driven the development of local SMEs. Over the past five years, the number of enterprises in Morowali Regency, Central Sulawesi Province, has surged by 62.7%, rebounding to 7,643 in March 2025. Significant growth was seen in 2023, reaching 6,617 in February and 7,299 in August; growth slowed in 2024, with only a slight increase to 7,318. The presence of IMIP Industrial Park has greatly promoted the development of local MSMEs, which have sprung up like mushrooms after rain. Rows of small shops, stalls, and semi-permanent store buildings have become a bustling scene in residents' lives.
Chinese Auto Brands Spark Price War in Indonesia
Chinese auto brands in the Indonesian market are increasingly engaged in a price war. According to Gaikindo data, from January to May 2025, Indonesia's wholesale car sales dropped 5.5% year-on-year, from 335,405 units in the same period of 2024 to 316,981 units; retail sales fell 9.2% year-on-year, from 362,163 units to 328,852 units. Chinese car manufacturers have been cutting prices in the Indonesian market, with reductions ranging from hundreds of thousands to nearly tens of millions of rupiah, indicating intensifying competition among brands. When Chery Omoda E5 was first launched in February 2024, its on-road price in Jakarta was 498.8 million rupiah, later renamed Chery E5, the price was drastically reduced to 399.9 million rupiah, with the Pure version starting at 369.9 million rupiah, a reduction of nearly 100 million rupiah; BAIC BJ40 Plus locally assembled model price dropped from 790 million rupiah for the imported CBU to 698 million rupiah, a reduction of 92 million rupiah. The Chief Operating Officer of BAIC Indonesia stated that the price reduction was due to local assembly eliminating import duties, not because of reduced features; Jetour Dashing and X70 Plus, due to supply chain efficiency improvements, Jetour twice reduced prices for these two SUVs. Dashing Journey version dropped to 348.8 million rupiah, Inspira version 379.8 million rupiah; X70 Plus Journey version 359.8 million rupiah, Inspira version 389.8 million rupiah. In October 2024, Jetour had started CKD (Completely Knocked Down) production of these two models at the PT Handal Indonesia Motor (HIM) plant. When first launched, the Dashing was priced at 389.8 million rupiah and the X70 Plus at 414.8 million rupiah.
Geothermal Power Plant Designed by Chinese Company Officially Commissioned
The Lumut Balai Phase II Geothermal Power Plant Project, after passing a 72-hour continuous reliability operation test, was approved by the Ministry of Energy and Mineral Resources and the State Electricity Company (PLN) and officially commissioned. The project is located in Muara Enim Regency, Palembang City, South Sumatra Province. It involves the construction of a 55 MW (net output) condensing steam turbine generator unit, along with a steam collection system, brine reinjection long-distance pipeline system, transmission lines, and step-up substation facilities. The design was carried out by Southwest China Power Design Institute, a subsidiary of China Energy Engineering Group. This project is a "single-flash" geothermal power plant project fully executed and successfully commissioned by a Chinese company, and it is also the largest single-unit geothermal power generation project designed by a Chinese company in Indonesia.
Chinese Beverage Brand Enters Indonesian Retail Market
In June 2025, the ice tea series under Chinese beverage company Genki Forest (Chi Forest) made its debut in mainstream Indonesian retail channels. The white peach jasmine and grapefruit green tea flavored Chi Forest iced teas were launched at Alfamart convenience stores on the streets of Indonesia, marking the second product line to enter the Indonesian market after sparkling water. At the same time, the bamboo grapefruit flavored sparkling water was also launched, enriching choices for local consumers. Genki Forest has built a network covering mainstream retail systems, selling in over 30,000 retail outlets across Indonesia. In 2022, Genki Forest entered the Indonesian market with a health-focused positioning of '0 sugar, 0 fat, 0 calories'