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.
Jakarta Land Prices Continue to Rise
Seven Major Commodities with Surging Exports from China to Indonesia
Geothermal Power Plant Designed by Chinese Company Officially Commissioned
Indonesia Relaxes Import Restrictions on Ten Categories of Goods
Indonesia to Increase Imports of US Oil and Agricultural Products
The Coordinating Minister for Economic Affairs recently stated that the Indonesian government plans to sign a Memorandum of Understanding with the United States on Monday, July 7, 2025, regarding increasing imports. The MoU involves Indonesia increasing imports of oil and agricultural products from the US. Indonesia will import energy commodities from the US, with a total value of US$15.5 billion (approximately IDR 251.11 trillion). In addition to energy commodities, it also includes imports of agricultural products, as well as related investment plans involving state-owned enterprises and Danantara. Negotiations are ongoing, and the Indonesian negotiation team representatives are currently in the US.
Indonesia to Impose Anti-Dumping Measures on Chinese Imported Goods
The Vice Minister of Industry recently stated that the government will implement anti-dumping or safeguard measures at border areas to prevent a massive influx of Chinese imported products. The core goal is to block Chinese products from entering the Indonesian market, avoid disruption to the local market, and protect domestic industries. Due to the China-US trade negotiations in Geneva, Switzerland, the US imposed a 30% tariff on Chinese products, and China imposed a 10% tariff on US products. Chinese products facing barriers to the US market may be diverted to Indonesia. In June 2025, Indonesia's Purchasing Managers' Index fell by 0.5%, with the manufacturing sector still in contraction, mainly due to weak new export orders, global market sentiment and trade policy uncertainties, and political dynamics. From January to April 2025, Indonesia's imports of textiles and textile products increased by 8.84%, and footwear imports rose by 30.89%. Indonesia has a high dependence on Chinese steel and aluminum imports, with steel imports accounting for 51.41% (approximately US$2.17 billion) and aluminum imports accounting for 46.1% (approximately US$1 billion). China may shift steel and aluminum products to Indonesia. The government will use anti-dumping or safeguard mechanism instruments to intensively monitor the dynamics of steel and aluminum products at border areas, in order to quickly respond to abnormal import surges and protect domestic production.
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'
China-Indonesia 'Two Countries, Twin Parks' Focuses on Multi-Field Cooperation
After China opened quarantine access to fresh coconuts from Indonesia in November 2024, on April 12, 2025, 100 kg of fresh Indonesian coconuts arrived smoothly at Fuzhou Airport. Following customs quarantine clearance, they were delivered to Fujian Miaotianhui Food Co., Ltd., marking China's first import of fresh Indonesian coconuts and completing a key piece of the coconut industry cluster within the Fuzhou China-Indonesia 'Two Countries, Twin Parks'. The China park of the 'Two Countries, Twin Parks' has formed four major advantageous industries, with grain, oil, and food as the leading sector, alongside textiles and chemical fibers, light industrial machinery, and energy and fine chemicals. As of 2024, there are 112 registered above-scale enterprises, including 42 food processing enterprises, whose total above-scale output value accounts for over 60%.
China Imposes Anti-Dumping Duties on Stainless Steel Imports from Indonesia
China's Ministry of Commerce recently issued an announcement, deciding to impose anti-dumping duties on imported stainless steel billets and stainless steel hot-rolled sheets/coils originating from Indonesia, the EU, Japan, and South Korea from July 1, 2025. The tax rates by region are: Indonesian companies 20.2%, EU companies 43.0%, Japanese companies 18.1%-29.0%, South Korean companies 23.1%-103.1%, with an implementation period of 5 years. The product scope includes stainless steel billets and stainless steel hot-rolled sheets/coils, defined as alloy steel with a carbon content of 1.2% or less and a chromium content of 10.5% or more, except cold-rolled. Billets are rectangular (non-square) cross-section or other semi-finished products. Hot-rolled sheets/coils are obtained by hot rolling billets, in coil or sheet form, regardless of width and thickness.
China Helps Indonesia Become ASEAN's Largest Automotive Battery Production Center
In June 2025, Indonesia's and even ASEAN's largest integrated electric vehicle battery production and sales chain project was officially launched. President Prabowo attended the groundbreaking ceremony, emphasizing that it is a result of China-Indonesia cooperation. The project involves Chinese company CATL and several other Chinese enterprises, with a total investment of 5.9 billion USD. Production bases are located in Karawang, West Java, East Halmahera, and North Maluku. The project will drive the development of 18 infrastructure projects, including multi-purpose port construction. Experts believe China is helping Indonesia become the largest new energy vehicle battery production center in ASEAN. This project helps Indonesia transform from a "raw material subsidiary" to a "developed industrial country", increasing the added value of raw materials such as nickel, in line with President Prabowo's continued industrial policy. Despite disputes between Indonesia and China in the South China Sea and US attempts to drive a wedge, China remains Indonesia's largest economic and trade partner. The battery cooperation project consolidates bilateral friendly relations and has significant implications for global political stability. Due to EU restrictions on importing Chinese electric vehicles, China is accelerating its strategy shift towards the Asia-Africa market. GAC Group has set up an electric vehicle assembly plant in West Java (second factory in Southeast Asia); BYD's assembly plant in West Java is expected to start production by the end of 2025. The new industrial cluster will support the development of China's new energy vehicles in Asia.
China-Indonesia Cooperation to Build Bandung Airport Industrial City Project
Recently at the BRICS Innovation Base Industry Project Matchmaking Meeting held in Beijing, the Indonesia Bandung Airport Industrial City (LCT) project became the highlight with the largest investment scale. The project is a joint development between Indonesia's Wanxinda Group and West Java Aerocity Development (PT BlB Aerocity Development), with an initial investment of 1.68 billion USD, planned to start construction in the second half of 2025. It covers 26,000 mu, leveraging the Bandung airport hub to build a comprehensive industrial new city. Key sectors include food processing, building materials manufacturing, home appliance production, and automotive industry.