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
China Remains Indonesia's Largest Import Source
Bali Consulate General Reminds of Volcanic Eruption Impact
Jakarta-Surabaya high-speed rail requires government support
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.
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
Jakarta land prices hit new highs, with the SCBD area surpassing Menteng and Sudirman. Land prices in the Jakarta Special Capital Region, especially in urban and commercial areas, continue to rise, with some land now reaching hundreds of billions of rupiah per square meter. SCBD (Sudirman Central Business District) approximately 20-30 billion rupiah per square meter (estimated, may change after transaction); Sudirman area approximately 18-20 billion rupiah per square meter; Menteng approximately 7-10 billion rupiah per square meter (due to proximity to business districts); Pondok Indah (high-end residential area) approximately 4-6 billion rupiah per square meter. The closer to the city center, the higher the land value, with the Sudirman Central Business District (SCBD) currently being the area with the highest land value in Jakarta.
Seven Major Commodities with Surging Exports from China to Indonesia
The Deputy Minister of Industry recently stated that after the US President announced new import tariffs on some countries, triggering a trade war, China lost its main market in the US, and a large number of products were diverted to other countries, with Indonesia becoming an important destination. This has led to an influx of Chinese products into the Indonesian market, impacting local industries. In June 2025, Indonesia's Manufacturing Purchasing Managers' Index was 46.9, in contraction territory, mainly due to weak new demand in export markets, global market sentiment, and trade policy uncertainty; labor-intensive industries such as textiles and automotive parts, as well as electronics and home appliances, are facing pressure from declining export demand; the conflict between Iran and Israel could disrupt energy supplies, thereby affecting global supply chains. The seven categories of commodities with surging exports from China to Indonesia include: HS 23 (food industry waste and processed feed) up 11.17%, HS 03 (fish and crustaceans) up over 100%, HS 18 (cocoa preparations and processed products) up over 100%, HS 09 (coffee, tea, mate and spices) up 53.42%, HS 48 (paper and paperboard) up 28.52%, HS 19 (cereals, flour, starch, milk and pastry) up 24.91%, HS 44 (wood products and charcoal) up 22.46%. China's agricultural exports to Indonesia surged to US$477,000 (approximately IDR 7.72 billion), up 30%; while during the same period, China's agricultural exports to the US decreased by US$1.17 billion (approximately IDR 18.95 trillion). Indonesia's high dependence on steel and aluminum imports from China is considered a potential structural issue. He emphasized that the government needs to pay attention to the impact of trade diversion on its import structure, formulate protective policies, strengthen local industries, avoid long-term dependence on imports, and at the same time explore the potential of the domestic agricultural industry and address challenges.
Geothermal Power Plant Designed by Chinese Company Officially Commissioned
The Lumut Balai Phase II Geothermal Power Plant Project, after passing a 72-hour continuous reliability operation test, was approved by the Ministry of Energy and Mineral Resources and the State Electricity Company (PLN) and officially commissioned. The project is located in Muara Enim Regency, Palembang City, South Sumatra Province. It involves the construction of a 55 MW (net output) condensing steam turbine generator unit, along with a steam collection system, brine reinjection long-distance pipeline system, transmission lines, and step-up substation facilities. The design was carried out by Southwest China Power Design Institute, a subsidiary of China Energy Engineering Group. This project is a "single-flash" geothermal power plant project fully executed and successfully commissioned by a Chinese company, and it is also the largest single-unit geothermal power generation project designed by a Chinese company in Indonesia.
Indonesia Relaxes Import Restrictions on Ten Categories of Goods
The Coordinating Minister for Economic Affairs recently stated that the government has revised Trade Minister Regulation No. 8 of 2024 and issued Trade Minister Regulation No. 16 of 2025. The regulation was formulated after proposals from government departments, relevant associations, and stakeholders, followed by a regulatory impact analysis and a technical working meeting. It also announced the 10 categories of goods benefiting from import relaxation: forestry products, subsidized fertilizers, plastic raw materials, other fuels, and food trays are free from import restrictions; while saccharin, stevia and alcohol-containing flavor preparations, specific chemicals, pearls, insoles, and two-wheeled and three-wheeled bicycles only need to go through the relevant procedures with inspection agencies.