Indonesian Business Conglomerates Frequently Venture into Real Estate and Logistics
Two major Indonesian business groups, Grup Djarum and Grup Astra, have recently become increasingly active in acquisitions within the real estate and logistics sectors. This is seen as a strong signal of their confidence in Indonesia's long-term economic recovery prospects. Astra International, through its subsidiary PT Saka Industrial Arjaya (SIA), officially acquired a majority stake in PT Mega Manunggal Property (MMLP). SIA will acquire approximately 83.67% of MMLP's shares. Upon completion of the transaction, SIA will become the new controlling party of MMLP, and Astra is required to make a mandatory tender offer to the public in accordance with regulations. This acquisition is part of SIA's long-term business development and investment strategy, expanding its portfolio in the real estate and logistics sectors. Djarum's investment vehicle, PT Dwimuria Investama Andalan, holds a 6.56% stake (308.73 million shares) in SSIA and has been listed among shareholders with a stake exceeding 5% in SSIA since July 4, 2025, and has continued to increase its holdings. The company also holds 8.32% of PT Sarana Menara Nusantara (TOWR) and acquired all repurchased shares of PT Medikaloka Hermina (HEAL) outside the Indonesia Stock Exchange on June 25, 2025. PT Chandra Asri Pacific (TPIA), through the CAP fund, holds 5.60% of SSIA shares (approximately 263.41 million shares). TPIA previously held over 5% of SSIA shares in March 2025, then disappeared from the list, and reappeared in mid-July 2025, stating that this move is part of its portfolio strategy and not an attempt to directly control SSIA. Market analysts point out that the retail sector has been significantly affected by market pressures, with the IDX Consumer Cyclical Index contracting by 15.72%. Consumer purchasing power has declined, and indicators such as PMI data and inflation also show weak public demand. The logistics sector has also been heavily impacted by the economic slowdown. However, analysts believe that in this context, the acquisition moves by large enterprises are strategically significant, similar to situations during the COVID-19 pandemic when hotel industry distress led to acquisitions by other groups. The acquisitions of SSIA and MMLP indicate that these groups are optimistic about Indonesia's economic recovery potential, although this recovery is long-term and not achievable in the short term.
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Up to 28 Production Lines Suspended at Multiple Indonesian Nickel Smelters
Recently, multiple nickel smelters in Indonesia have suspended production lines, including PT Gunbuster Nickel Industry (GNI), which has over 20 nickel-iron production lines. Since early 2024, almost all production lines have been shut down, with only a few still running; it is estimated that more than 15 lines have stopped, approaching a complete halt. The company is awaiting a creditors' meeting to obtain new funds, possibly in August 2025, and is currently under new management. PT Indonesia Tsingshan Stainless Steel (I
US Tariff Rate on Indonesian Goods Reduced to 19%
The United States has reduced the tariff on Indonesian export products from 32% to 19%, making it one of the countries with lower tariffs in ASEAN. According to a report from the Office of the Chief Economist (OCE) of Bank Mandiri Indonesia dated July 16, 2025, there are differences in export tariffs to the US among ASEAN countries. Laos and Myanmar top the list at 40%, Cambodia and Thailand at 36%, Malaysia 25%, Vietnam and the Philippines 20% each, Indonesia 19%, and Singapore the lowest at 10%. The relevant agreement was reached through direct negotiations between US President Trump and Indonesian President Prabowo. Trump stated that the US will obtain full access to Indonesian copper and other products without paying tariffs, which has never happened before.
Chinese Enterprise Invests $2 Billion in Nickel Smelting Project
The 2025 China (Guangdong)-ASEAN Trade Promotion and Supply Chain Cooperation Mechanism Building Exchange Meeting was recently held in Guangzhou, during which Guangxin Group signed the Indonesia Guangqing Nickel-Cobalt HPAL Project. The new project, jointly developed by Guangxin Group and Tsingshan Group, is a global benchmark project with an annual output of 80,000 tons of nickel-cobalt intermediate products. The total investment is approximately US$2 billion, with trial production expected by the end of 2026 and an annual profit of about RMB 2 billion after full operation. The product is nickel-cobalt hydroxide, used in cathode materials for new energy ternary lithium batteries. Using RMB for capital contribution, financing, and settlement, it is an innovative case of "RMB internationalization." Guangxin Group is a wholly state-owned enterprise of the Guangdong Provincial Government, a state-owned capital investment company with manufacturing as its main body, capital investment as its primary responsibility, market orientation, and mixed ownership as its characteristic. In 2024, it was again listed in the Fortune Global 500, ranking 414th. The company actively implements the national Belt and Road Initiative, with overseas revenue accounting for 36%. ASEAN is one of its main overseas business bases, with revenue from ASEAN accounting for 86.3% of the group's overseas revenue, serving as an important growth engine. Starting from foreign trade, the company has accelerated the implementation of manufacturing and supply chain projects in ASEAN in recent years, such as the Indonesia Guangqing project jointly established with Tsingshan Group in Indonesia in 2014, as well as related projects in Vietnam, Thailand, Cambodia, and Singapore. The Indonesia Guangqing Nickel-Cobalt HPAL Project is another milestone in deepening industrial chain cooperation between Guangxin Group and ASEAN. It will provide an effective guarantee for the stable supply of nickel resources for global new energy batteries. The group will also leverage this to increase investment and layout in ASEAN, jointly build a more resilient cross-border industrial chain, and contribute to the development of Guangdong and the construction of a community with a shared future for neighboring countries.
China's anti-dumping tariff on Indonesia will affect nickel ore prices
China officially imposes anti-dumping tariffs of 20.2% on Indonesian stainless steel billets, hot-rolled sheets and other products, effective from July 1, 2025, with a five-year extension until 2030. This policy targets not only Indonesia but also similar products from the European Union, the United Kingdom, and South Korea. The Indonesian Nickel Mining Association stated that this policy will lower nickel ore prices and, due to reduced demand for saprolite nickel ore as raw material, affect upstream industries, potentially lowering sales prices and state non-tax revenue. The Morowali Industrial Park (IMIP) in Central Sulawesi and the Weda Bay Industrial in North Maluku
Chinese Goods Transshipment via Indonesia Draws US Attention
A researcher from the economic department of the Center for Strategic and International Studies pointed out that the main threat in current trade dynamics is not only high tariffs but also potential obstacles arising from allegations of Chinese transshipment. The US-China trade competition has shifted from tariff wars to reshaping global supply chains. The US not only restricts "Made in China" products but may also restrict "Created in China" products manufactured in factories in other countries, including Indonesia. Transshipment refers to Chinese goods being re-exported via third countries like Indonesia. For example, China uses Indonesia's free trade agreement with Australia to first ship goods to Indonesia and then export them to Australia to obtain lower tariffs, possibly even just relabeling them as "Made in Indonesia" without substantive processing that meets rules of origin.
Apple to Build Production Factory in Batam This Year
US tech giant Apple will build a factory in Batam this year, located in the Tunas Industrial Prima industrial zone. The head of the Batam Enterprise Agency stated that the factory plan is mature, and Apple is currently communicating with tenants in the park. Relevant information will be announced after communication is completed, and construction is expected to start within this year. This factory is related to Apple's core technology business, but the specific products to be manufactured are not yet clear. The Deputy Director for Investment Promotion of the Ministry of Investment and Downstream Industry stated that Apple's investment plan to build an AirTag factory in Batam is progressing steadily, and Apple has already purchased land for the factory, demonstrating a serious investment attitude.
China Remains Indonesia's Largest Import Source
In 2024, Indonesia's import value reached US$235.2 billion, an increase of 5.42% from US$221.9 billion in 2023. Among them, oil and gas imports were US$36.28 billion, and non-oil and gas imports were US$198.9 billion. Indonesia's top ten import source countries in 2024 were China, Singapore, Japan, the United States, Malaysia, Australia, Thailand, South Korea, Vietnam, and India. Imports from these ten countries increased by US$12.3 billion in 2024 compared to 2023, a growth of 7.59%, and their share of Indonesia's total imports rose from 72.91% in 2023 to 74.41% in 2024.