Chinese automobile brands are deploying in the Indonesian market
Indonesia, as the largest automobile market in Southeast Asia, sold 866,000 vehicles in 2024, a year-on-year decrease of 13.9%; with a population of over 280 million, a large young population, and huge consumption potential, it is the second largest automobile producer in Southeast Asia. The government has made electric vehicles a national priority industry, formulated development plans, improved fiscal and tax incentive policies (tax incentives, purchase subsidies, etc.), and issued a nickel ore export ban. Indonesia is rich in nickel, cobalt and other mineral resources, hoping to leverage these resource advantages to become a key player in the global electric vehicle supply chain. Wuling landed in West Java in 2015, started production in 2017 with an annual capacity of 150,000 vehicles, and in 2024 invested in building a battery pack assembly line and a core supplier park; in 2022, it launched the Wuling Air EV (right-hand drive version), becoming the first mass-produced electric vehicle model in Indonesia; in May 2025, the global 3 millionth new energy vehicle rolled off the production line in Indonesia, and the Shenlian battery has also been put into production. GAC's smart factory in Jakarta was completed and put into operation in July 2025, introducing "lighthouse factory" standards, with annual capacity gradually expanding from 20,000 to 50,000 vehicles, focusing on pure electric vehicles, gradually introducing plug-in hybrids and hybrid models, covering SUV, MPV and other segments, and developing 7-seat models. BYD's Indonesia factory is under construction, planned to be completed by the end of 2025, with a planned capacity of 150,000 vehicles, and will gradually adopt localized supply chains after production, cooperating with Indonesian nickel mining companies to build a battery material base, expected to achieve localized production of lithium iron phosphate batteries in 2026, reducing costs by 30%. XPeng is cooperating with PT Handal Indonesia Motor (HIM), which will be responsible for localized assembly of the XPeng G6 and X9 models using the completely knocked down (CKD) method; the XPeng X9 right-hand drive version will be produced in Indonesia in July 2025. Skyworth achieved localized production in early June 2025 through OEM by Polytron, a subsidiary of the Charoen Pokphand Group, with its Skyworth K model rolling off the line as the Polytron G3. CATL, Huayou Cobalt, Tsingshan Holding, CMOC Group, GEM Co., Ltd. and other battery and material manufacturers have entered the Indonesian market to deploy battery and material production.
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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.
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.
Bali Consulate General Reminds of Volcanic Eruption Impact
At noon on July 7, 2025, Mount Lewotobi in East Nusa Tenggara erupted violently again, with ash columns reaching approximately 18,000 meters. Since mid-June, the volcano's alert level has remained at the highest level, Level 4. Local authorities have asked residents and tourists not to enter within a 7-kilometer radius of the crater. The Consulate reminds Chinese citizens in its jurisdiction to closely follow warning information issued by relevant Indonesian authorities, enhance safety awareness, strengthen self-protection, and avoid entering volcanic warning zones. Due to the high concentration of volcanic ash, temporary flight cancellations or disruptions at airports in Bali, West Nusa Tenggara, and East Nusa Tenggara cannot be ruled out.
Jakarta-Surabaya high-speed rail requires government support
The President Director of PT Kereta Cepat Indonesia China (KCIC) stated that the continued progress of the Jakarta-Surabaya high-speed rail project depends on government support. Due to the high construction costs of high-speed rail, not all banks or financial institutions have the capacity and willingness to provide financing. Therefore, in many countries, the supply of high-speed rail usually comes from the government, depending on the government's willingness. At least the land and some infrastructure must be provided by the government. If all costs are borne by KCIC, it would increase the burden of investment recovery and lengthen the payback period. This is one of the lessons learned from the previous Jakarta-Bandung high-speed rail Whoosh
Indonesian police use Chinese-made aircraft for patrols
The Indonesian National Police has procured the Chinese brand EHang 216-S electric air taxi from PT Prestisius Aviasi Indonesia (Prestige Aviation). The air taxi was displayed at the 79th anniversary celebration of the Indonesian National Police and will be used to enhance police aerial patrols. The Executive Chairman of Prestige Aviation said that this procurement shows the Indonesian police are serious about adopting future technology to strengthen services and national security responses, and also symbolizes that the Indonesian police are ready to adapt to global technological developments
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.