Chinese Construction Machinery Enterprises Invest in Developing Indonesian Market
Shantui Construction Machinery Co., Ltd. recently announced that, to meet the company's strategic development needs and further expand overseas markets, the company, through its wholly-owned subsidiary Shantui (Hong Kong) Holdings Co., Ltd. together with Shantui Singapore Company, jointly invested USD 3 million to establish a wholly-owned overseas subsidiary in Indonesia. This investment aims to meet the company's business development needs, further expand market business in Indonesia and other countries, promote exchanges and cooperation between the company and markets such as Indonesia, enhance the company's comprehensive strength and market competitive advantages, and create more opportunities and favorable conditions for the company's development. The company is mainly engaged in construction machinery
West Java Patimban Port Project Progress Reaches 64.72%
US Tariff Rate on Indonesian Goods Reduced to 19%
Chinese Enterprise Invests $2 Billion in Nickel Smelting Project
Chinese Company Invests IDR 649 Billion in Textile Factory Construction
China-Indonesia Enterprise Cooperation in the Automotive Charging Sector
ZD Energy and Indonesia's Indomobil Group have officially established a joint venture. Senior leadership teams from both sides attended the signing ceremony, marking a key step in ZD Energy's globalization strategy in the Southeast Asian market. Indomobil Group, a subsidiary of the Salim Group—one of Indonesia's largest conglomerates—has a history of over 50 years and is a leading automotive industry giant in Indonesia. It operates more than 20 internationally renowned automotive brands including Volkswagen, Nissan, and Suzuki, and possesses rich local automotive supply chain resources. Founded in 2010, ZD Energy is a global leader in new energy vehicle charging and green energy digital technology.
Indonesian Ambassador Encourages Chinese Enterprises to Invest in Indonesia
Djauhari Oratmangun, Indonesian Ambassador to China, recently stated at a forum for Chinese enterprises going global that China's investment in various sectors in Indonesia has been doubling annually, reaching 8.1 billion USD in 2024, compared to approximately 800 million USD in 2014. China is Indonesia's largest trading partner, with bilateral trade reaching 147.8 billion USD in 2024, a year-on-year increase of 6.1%. Of this, Chinese exports amounted to 76.7 billion USD (up 17.6% YoY), while imports were 71.1 billion USD (down 4% YoY). China is the second-largest source of foreign investment for Indonesia, and Indonesia is China's second-largest investment destination in ASEAN. He called on more Chinese enterprises to come to Indonesia, not only to invest but also to grow together, learn from each other, and jointly create solutions.
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.
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
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.