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.
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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.
Indonesia relaxes import restrictions on ten categories of goods
The Indonesian government officially announced the first round of deregulation policies yesterday, aiming to facilitate business operations, enhance domestic industrial competitiveness, create an ecosystem supporting employment, and strengthen national economic resilience in response to global trade uncertainties. The Coordinating Minister for Economic Affairs and the Minister of Trade introduced the relevant policy content. Old regulations, such as the 2024 Minister of Trade Regulation No. 8 and the 2023 Minister of Trade Regulation No. 36, have been revoked, and nine new Minister of Trade Regulations have been introduced, classified by commodity clusters for easier future adjustments. These regulations cover general import policies and provisions, textiles and textile products, agricultural and livestock products, salt and fishery products, chemicals, hazardous goods and mineral materials, electronics and telecommunications products, specific industrial products, consumer goods, and imports of non-new goods and non-B3 waste.
Prabowo attends groundbreaking of CATL automotive battery project
President Prabowo attended yesterday the groundbreaking ceremony of the integrated electric vehicle battery industry ecosystem project built by the ANTAM-IBC-CBL consortium in Karawang Regency, West Java Province, and delivered a speech. He emphasized that developing the new energy industry is a strategic step to achieve national energy independence and resilience, proudly announcing the official launch of the project. The project involves Indonesia's state-owned mining company PT Aneka Tambang Tbk (ANTAM), Indonesia Battery Corporation (IBC), and Chinese enterprises CATL, Brunp, and Lygend.
Chinese-funded enterprise initiates construction of Indonesia photovoltaic module manufacturing project
Chinese solar energy company LONGi Green Energy and Pertamina NRE, a new energy subsidiary of Indonesia's state electricity company, have initiated the construction of an advanced photovoltaic module manufacturing base project in Indonesia, located in Deltamas, West Java Province. The annual production capacity is expected to reach 1.6 GW, utilizing LONGi's most advanced HPBC 2.0 high-efficiency battery technology to produce high-performance solar modules. Production preparation is scheduled to start in June 2025. The project aims to enhance Indonesia's local manufacturing capability and localization level of high-efficiency photovoltaic products, meeting the growing demand for high-quality photovoltaic modules in Indonesia and the Southeast Asian market.
Chinese Smart Electric Motorcycle Plans to Launch in Indonesia Next Year
Chinese brand OMOWAY recently held the global debut of its first smart electric motorcycle, the OMO X, in Jakarta, demonstrating automotive-grade intelligent technology by having the motorcycle "drive itself onto the stage." The brand was founded by the co-founder and former vice president of XPeng Motors, among others. The former head of XPeng's autonomous driving led the development of the HALO intelligent driving system, the former XPeng exterior design director and P7 styling head gave the OMO X a "three-in-one" design, and the former VIVO Indonesia head helped deeply anchor the needs of Southeast Asian users. The HALO Pilot intelligent driving system integrates visual perception with OMO self-balancing technology, supporting automotive-grade functions such as adaptive cruise control (ACC) and one-key parking. It features super-perception algorithms and AI big data models, providing multi-directional collision warnings and the industry's first collision-assisted braking function. The HALO Link interconnected ecosystem includes functions such as digital key hands-free unlocking, V2X vehicle-to-vehicle connectivity for group riding, and a 10.25-inch large screen integrating navigation and charging station information. Through full-domain perception, intelligent decision-making, and precise control, it monitors the driving environment in real time. The CAB function can intervene with active braking under specific conditions to reduce collision damage. It supports three forms — scooter, cruiser, and touring — that can be flexibly switched, adapting to diverse scenarios such as urban commuting, short rides, and long-distance travel. Indonesia has 120 million motorcycles, and electric motorcycle sales surged 400% in 2024, with young users highly receptive to smart technology. The team conducted a year of field research, optimizing battery placement for Southeast Asia's hot and rainy climate, adjusting seat height and load capacity based on local riding habits, and has reached strategic cooperation intentions with multiple dealers, with production and supply chains ready. The production version of the OMO X is expected to be officially unveiled in the second half of 2025 and will first launch in the Indonesian market in 2026. The brand plans to use Indonesia as a starting point to expand globally through a "localization strategy," extending automotive-grade technology to more mobility scenarios, with the goal of "bringing highly intelligent products into every home," ushering in a new era of "Motorcycle 3.0."
XPeng's First Overseas Local Production Project to Launch in Indonesia in July
XPeng Motors recently announced in Jakarta that its flagship model, the XPeng X9, has officially entered the local market with a starting price of IDR 990 million (approximately RMB 467,000). At the same time, its first overseas localized production project has entered the countdown to production. The right-hand drive XPeng X9 will be locally produced in Indonesia in July 2025, marking XPeng's completion of the full overseas "manufacturing + delivery" chain. As the most populous country in Southeast Asia with an annual automotive sales potential of millions, Indonesia is XPeng's first production hub in its global layout, focusing on the core Southeast Asian market. Localized production will improve market response efficiency, provide customized intelligent electric solutions for Indonesia and surrounding regions, accelerate technology adoption and democratization, and achieve a win-win situation. As a high-end pure electric flagship MPV, the XPeng X9 can switch between a large four-seat SUV and a large seven-seat MPV, with one-key electric fold-down rear seats, a 5.4-meter ultra-small turning radius for the rear wheels to adapt to narrow terrain, AI intelligence, and a super-strong A-chassis, catering to Indonesia's large family needs and complex terrain. Its smart cockpit, leading autonomous driving system, and standard rear-wheel steering function precisely match Indonesian consumers' strong demand for smart, environmentally friendly new energy vehicles. The XPeng X9 has already set a record as the annual sales champion among high-end pure electric MPVs. Chairman He Xiaopeng is confident, targeting the top spot in Asia-Pacific high-end pure electric MPV sales in 2025. From "export" to "localized production," XPeng has entered over 40 countries and regions worldwide. The Indonesia project is a key step in its global strategy, continuously strengthening its international competitiveness.