Maximum Three Free Shipping Per Month for Online Shopping in Indonesia
The Ministry of Communication and Information Technology recently issued a regulation limiting free shipping promotions by courier companies to a maximum of 3 days per month, aiming to protect couriers' rights and ensure healthy industry development. The Director General of Digital Ecosystems at the Ministry stated that the policy is designed to build a healthy, sustainable, and fair postal service ecosystem. Continuously and unrestrainedly lowering courier prices harms couriers' welfare; this policy ensures couriers can live decently while promoting the development of logistics enterprises and maintaining economic fairness. The policy only restricts shipping discounts offered by courier companies, not free shipping promotions by e-commerce platforms. Restricted discounts refer to those below the actual delivery cost (including courier fees, intercity transportation fees, sorting fees, and other ancillary service costs). If such discounts persist, it could lead to lower courier income, enterprise losses, and declining service quality. Consumers can still enjoy free shipping services provided by e-commerce platforms every day. If e-commerce platforms use subsidized shipping as a promotional strategy, the Ministry will not intervene. This policy was formulated through dialogue with courier industry practitioners, associations, and other stakeholders, reflecting a balance between market efficiency and worker protection.
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Indonesian Steel Exports to the US and Canadian Markets
PT AM/NS Indonesia recently held a ceremony at Tanjung Priok Port to export 10,000 tons of galvanized steel to the US, the highest export volume in nearly 20 years, worth US$10 million. An official from the Ministry of Industry stated that the steel industry shows a positive growth trend with increasing exports, especially entering competitive markets like the US, proving that Indonesian steel quality is internationally recognized and globally competitive. The Indonesian steel industry faces global competition mainly from countries such as China, Vietnam, Japan, and South Korea. Meanwhile, inadequate regulation of non-standard steel imports affects industrial development. To enhance the competitiveness of the steel industry, the government has formulated multiple
Indonesia's Downstream Industry Investment Reaches IDR 136.3 Trillion in Q1
In the first quarter of 2025, investment in Indonesia's downstream industry achieved significant growth, reaching IDR 136.3 trillion. This represents an increase of 1.04% compared to the previous quarter and a year-on-year increase of 79.82% compared to IDR 75.8 trillion in Q1 2024. The Minister of Investment and Downstream Industry / Head of the Investment Coordinating Board stated that the investment potential in the downstream industry is enormous, and the 79.82% year-on-year growth is significant, bringing considerable benefits to the Indonesian economy. In terms of investment composition, this sector contributed 29.3% to the total investment in Q1 2025, an increase from 24% over the past three years, thanks to the optimization of downstream product processing. Among this, mineral commodity investment reached IDR 97.6 trillion, mainly in nickel, steel, copper, etc.; the plantation and forestry sector contributed IDR 31.13 trillion, covering oil palm, rubber, etc.; the oil and gas sector reached IDR 6.55 trillion; and the fisheries and marine commodities sector reached IDR 1.03 trillion, including salt, tuna, etc. Previously, investment was mostly concentrated in nickel and its downstream industries. Now, the copper industry is also developing. In the future, it will promote deep processing of industries such as oil palm to create more jobs and added value, while also continuing to drive the diversification of downstream industries in the marine sector, such as seaweed and fish.
Development of Indonesia's Methanol Industry
Indonesia has a high demand for methanol, with consumption exceeding 1.3 million tons in 2023, but domestic production only meets one-third of the demand, requiring large-scale imports. Indonesia is rich in resources, with natural gas reserves reaching 54.83 trillion cubic feet in 2024, coal reserves exceeding 39.89 billion tons, and significant biomass potential. Using existing technologies, these resources can produce large quantities of methanol, and the potential for producing methanol from carbon dioxide is also considerable. In the long run, the development of the methanol industry can reduce dependence on imported fossil fuels, stabilize raw material supply, and help Indonesia become a methanol industry hub. With increasing awareness of energy independence and industrialization,
US-China Trade War Causes Chinese Textile Products to Flood into Indonesia
The US-China trade war has made it difficult for some Chinese products to enter the US market due to high tariffs, causing them to flood into Indonesia instead, including clothing and other products. This has raised concerns among local Indonesian textile industry practitioners, such as local pajama sellers expressing worries about the industry's prospects. The chairman of the Indonesian Fiber and Filament Manufacturers Association pointed out that the influx of Chinese clothing products and the increase in tariffs on exports to the US will impact the upstream and downstream sectors of Indonesia's domestic clothing production. It is estimated that approximately 125,000 people in the filament production sector alone face unemployment. The Minister of Industry acknowledged the issue of imported clothing flooding in during the US-China trade war but did not specify the source of the products. He stated that transshipment issues have exacerbated the phenomenon and proposed strengthening the management of certificates of origin, adding that the government will help the domestic textile industry cope with economic uncertainty. Economists believe that regardless of how the Indonesian government negotiates, Indonesia will actually become more dependent on China in trade. Because there are restrictions on US products entering Indonesia, Chinese products have more advantages in entering the Indonesian market when non-tariff measures are relaxed. The association chairman suggested that the Indonesian government take a series of measures, such as imposing safeguard tariffs and anti-dumping tariffs, and strictly controlling the issuance of certificates of origin for Indonesian export products, to protect domestic industries from the impact of imported products.
Indonesia Plans to Shut Down Eighteen Coal-Fired Power Plants
Indonesia aims to achieve net-zero emissions by 2060 and plans to shut down coal-fired power plants (PLTU), as outlined in the Minister of Energy and Mineral Resources' regulation on the energy transition roadmap for the power sector. The Institute for Essential Services Reform (IESR) supports the government's plan to shut down PLTUs, with its Executive Director noting that the regulation provides a legal basis for power infrastructure development. IESR research shows that to mitigate the climate crisis, 72 coal-fired PLTUs with a total installed capacity of 43.4 GW need to be phased out between 2022 and 2045. It recommends shutting down 18 PLTUs with a total installed capacity of 9.2 GW from 2025 to 2030
Chinese Nickel Giant to Replace LG in Indonesia Partnership
The Minister of Investment confirmed that Chinese nickel processing giant Huayou will join the Indonesian EV battery consortium, replacing South Korea's LG Energy Solution which has withdrawn. Huayou operates in Indonesia through local subsidiaries, has been involved in key nickel processing projects, and is well-versed in the industry. LG Energy Solution had previously formed a consortium with Indonesia Battery Corporation and state-owned mining company Antam, planning a $9.8 billion joint investment project covering upstream mining, smelter construction, cathode processing plants, and battery factories. However, due to prolonged delays and stalled negotiations, in January the Minister of Energy and Mineral Resources formally notified LG Chem and LG Energy Solution to terminate the consortium cooperation, and LG and its partners had already paid part of the $1.1 billion initial investment. Huayou expressed interest in joining the consortium as early as last year, and after joining, the overall investment target for the project remains $9.8 billion. This EV battery consortium is a key part of Indonesia's strategy to develop a complete domestic EV supply chain and accelerate the establishment of its first EV ecosystem.
Indonesian Ministry of Maritime Affairs and Fisheries Encourages Investment Cooperation in Fisheries with China
The Ministry of Maritime Affairs and Fisheries actively participated in the China (Zhejiang)-Indonesia Trade and Investment Conference, encouraging investment and trade cooperation with China in the fisheries sector, covering multiple aspects such as fishing, aquaculture, processing, and logistics. The conference was organized by the Zhejiang Provincial Government and the China Council for the Promotion of International Trade Zhejiang Branch, aiming to strengthen economic relations between the two countries and explore investment opportunities in strategic sectors including maritime affairs and fisheries. The Indonesian government is committed to creating a favorable investment environment by simplifying permits, providing incentives, improving infrastructure, and cultivating reliable human resources to attract investment. In 2024, Indonesia's fishery product exports to China reached