CATL's Indonesia Battery Project to Break Ground in June
The Minister of Energy and Mineral Resources recently revealed that the upstream-downstream integrated battery project by Chinese investor Contemporary Amperex Technology Co Limited (CATL) will hold its groundbreaking ceremony in June 2025. The project, with an investment of approximately USD 6-7 billion, aims to build a complete electric vehicle battery ecosystem from upstream to downstream, including mining, high-pressure acid leaching smelters, precursors, cathodes, battery cells, and other stages. It is the first of its kind globally. He understands that some European countries want to build battery cell factories near European automobile plants, but emphasized that precursor and cathode factories must be located in Indonesia to achieve a fair and win-win situation and to safeguard Indonesia's nickel supply chain and industrial ecosystem. This project is not just an investment but a significant adjustment to the global battery industry layout, with far-reaching impacts on Indonesia's related industries and international cooperation.
Indonesia's Trade Balance Surplus Hits 60-Month Low
Indonesia's Benzoin Exports Continue to Increase
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Chinese Flavor Company Invests in Building Factory in Indonesia
Chinese Auto Parts Companies Enter Indonesian Market
PT Multi Medika Internasional Tbk (MMIX) recorded a 9.6% increase in sales in 2024 compared to the previous year, reaching IDR 191.99 billion. Its products MIUBaby and Miutiss have been well-received in the market due to innovation, achieving innovative results in the personal care sector, such as Indonesia's thinnest baby diapers and the first chlorine-free bamboo tissue, which has enhanced its product competitiveness in the domestic market. MMIX will build a baby diaper factory in Indonesia to improve supply chain efficiency and expand production scale. This plan
Chinese Auto Parts Companies Enter Indonesian Market
Chinese automotive chassis parts manufacturer GSP Automotive Group Wenzhou Co. Ltd. has partnered with PT Sanjusan Hazan Motor from Sumber Berkat Group to enter the Indonesian automotive market, while also celebrating GSP's 40th anniversary. On the occasion of GSP's 40th anniversary, this collaboration marks its business expansion, reflecting a commitment to global growth and product excellence. The company has launched two products: Drive Shaft and CV Joint (
Indonesia Plans to Provide Electricity to Unelectrified Households
The Minister of Energy and Mineral Resources stated that currently about 780,000 households in Indonesia are without electricity, distributed across 10,068 remote villages. The government plans to gradually electrify these households from 2025 to 2029 through the "Village Electricity" program run by Indonesia's state electricity company (PLN). To achieve this goal, the government will build a power plant with a capacity of 394 megawatts, which can provide power connections for approximately 780,000 households. Implementing this plan is expected to require an investment budget of about IDR 50 trillion over the next five years. He stated that electricity supply is not only a matter of demand but also a key step towards achieving regional fairness and justi
Prices of Hollow Steel Materials of Various Specifications in Indonesia
Hollow steel is an important material in building construction, commonly used for fences, awnings, gates, etc. Its price varies by size and thickness, typically sold in 6-meter lengths. The prices of hollow square steel of different specifications in Indonesia are as follows: 20 x 20 mm: 0.8 mm thickness IDR 49,000/piece, 1 mm thickness IDR 54,000/piece, 1.2 mm thickness IDR 65,000/piece, etc. 20 x 40 mm: 1.2 mm thickness IDR 93,000/piece, 1.4 mm thickness IDR 110,000/piece, 1.6 mm thickness IDR 131,000/piece, etc.
Indonesia Offers Multiple Tax Incentives for Chinese Investors
PT QMB New Energy Material, a subsidiary of Chinese renewable resources company GEM Co., Ltd., invested in Morowali, Indonesia, and received a 10-year corporate income tax (PPh) exemption plus a 50% PPh reduction for 2 years. The company is jointly held by several well-known enterprises and has also partnered with the Indonesian Institute of Technology for nickel research and development. Due to the tax exemption period, the company did not utilize the super tax deduction policy. Additionally, GEM plans to build an international green industrial park in Morowali, with an estimated investment of US$8 billion. The Vice Chairman of the Investment Coordinating Board stated that the government attracts foreign investment by offering various incentives such as tax holidays and tax allowances to enhance national competitiveness and encourage companies to conduct training and R&D. Tax holidays provide 100% corporate income tax relief for 5-20 years for new investments of at least IDR 50 billion (approximately US$335,000), with some companies eligible for an additional 50% reduction. For investments between IDR 10-50 billion, a 50% corporate income tax reduction for 5 years plus an additional 25% reduction for 2 years is offered. Tax allowances include a gross income reduction of up to 30% of the original value of fixed assets for specific industries or regions, accelerated depreciation and amortization, reduction of dividend income tax to 10% or lower, and extended loss carryforward periods. Furthermore, companies using a certain percentage of local machinery may enjoy duty-free imports of machinery, educational enterprises can benefit from up to 200% super tax deductions on educational activity costs, and labor-intensive industries and R&D activities also have corresponding tax incentives. Indonesia also has 25 special economic zones offering additional benefits such as import and export duty exemptions for investors. According to the Ministry of Finance's 2023 tax report, the government has provided IDR 21 billion in tax allowances for investments in specific sectors or regions and IDR 3.84 trillion in tax holidays for pioneer industries.
Another Chinese Investor Plans to Join Indonesia's EV Battery Project
The Indonesian Investment Coordinating Board revealed that besides CATL and Zhejiang Huayou Cobalt Co., Ltd., there may be new Chinese investors participating in Indonesia's electric vehicle battery project. The investment plan is part of the IDR 162 trillion investment promised during Chinese Premier Li Qiang's visit to Indonesia in May 2025. Currently, negotiations are at an initial stage, and the identity of the new investor has not yet been determined, but it is confirmed not to be the CATL Group. The "Dragon Project" in collaboration between Indonesia and CATL, with an investment of USD 600 million, is the world's first comprehensive battery ecosystem project, covering from mining to battery recycling.
Indonesia Plans to Export Rice to Malaysia
After domestic stocks are deemed safe, Indonesia is preparing to export rice to Malaysia. President Prabowo has ordered the advancement of this plan. The plan for Indonesia to export rice to Malaysia is increasingly firm. The Deputy Minister of Agriculture stated that President Prabowo has instructed that the plan be implemented in accordance with the existing mechanism. He has directly met with a Malaysian businessman who expressed a need to import rice from Indonesia. He emphasized that the government is ready to carry out the export task as instructed by the president. It is reported that Malaysia needs to import 2,000 tons of rice per month from Indonesia. However, the final decision still awaits further action from the Malaysian side.