Great Wall Motors Actively Expands into Indonesian Market
Great Wall Motors (GWM) plans to launch three new models in 2025, including the Ora electric vehicle and new versions of the Tank 300 and Haval. The Tank 500 and Tank 300 are the brand's best-selling models in Indonesia, accounting for 84% of total sales, with the Tank 500 contributing 50% and the Tank 300 contributing 34%. The Haval H6 and Haval Jolion each account for 8% of total sales. Although Haval sales are lower than Tank, they still have great development potential and have shown a positive trend in the first two months of 2025. As of March 2025, GWM had 6 official dealers in Indonesia, distributed across 5
Chinese Enterprise Signs Southeast Asia's First Green Electricity, Hydrogen, Ammonia and Methanol Project
Chinese and Indonesian Enterprises Deepen Cooperation in Environmental Protection
Chinese Company Becomes Major Shareholder of Indonesian Nickel Mining Company
Indonesian Presidential Palace Opens to Public for Eid al-Fitr Today
Garlic Import Quota Monopoly Drives Price Surge in Indonesia
In 2025, long-established garlic importers in Indonesia failed to obtain import quotas, forcing them to purchase quotas from shell companies allegedly controlled by a few privileged importers, incurring an extra cost of 7,000 to 8,000 rupiah per kilogram. For example, Jaya Sartika, a member of Pusbarindo, and Herry Thio, an importer with 25 years of experience, both applied for RIPH on January 8 but were rejected on the grounds that quotas were full. About 300 business participants applied for RIPH but none were approved. Five long-term importers stated that privileged importers trading licenses have caused garlic prices to soar in the market.
Indonesia Adjusts Royalty Rates for Various Minerals
The Ministry of Energy and Mineral Resources has revised regulations on royalties and non-tax state revenues in the mineral and coal sectors, aiming to increase the mining industry's contribution to state finances. The royalty rate for nickel ore will be raised from 10% to 14%-19%; nickel processing products such as nickel matte, ferronickel, and nickel pig iron will also see gradual rate increases based on price rises, with hikes ranging from 0% to 250%. Many minerals including coal, tin, gold, silver, and copper have planned royalty rate adjustments, such as coal having different rate adjustments depending on conditions; copper ore, copper concentrate, and cathode copper royalty rates will also increase significantly, ranging from 100% to 250%;
Japanese Brands Still Dominate Indonesia's Automotive Market
Indonesia's automotive sales in February 2025 showed a positive trend, with wholesale sales reaching 72,295 units, up 16.7% month-on-month and 2.2% year-on-year. Retail sales increased from 64,029 units in January to 69,872 units, a 9.1% rise, but still down 0.8% year-on-year. The market is highly competitive, with BYD being pushed out of the top ten best-selling brands. Japanese brands Toyota, Daihatsu, Honda, Mitsubishi, and Suzuki occupy the top five positions, showing clear advantages. Among them, Toyota led with wholesale sales of 24,397 units in February, Daihatsu 11,959 units, Honda, Mitsubishi, and Suzuki at 8,757, 6,684, and 4,750 units respectively.
Indonesia's Largest Gold Plant Has Annual Capacity of 50 Tons
Indonesia has a gold processing plant with an annual capacity of 50 tons, namely the Precious Metal Refinery (PMR) owned by PT Freeport Indonesia (PTFI) located in the Gresik Special Economic Zone, East Java. President Prabowo inaugurated the plant on March 17, 2025. The Minister of Energy and Mineral Resources revealed that the plant has an annual capacity of 50 tons. PT Freeport Indonesia has signed a sales contract with PT Aneka Tambang (ANTM) for 30 tons per year, with the remaining supply prioritized for the domestic market. He considers this an opportunity to invest in the gold sector. He stated that stable investments like gold are an option during global economic uncertainty, and the gold from this plant carries international certificates. This is Indonesia's largest gold plant, with an investment of USD 630 million (approximately IDR 10 trillion). On February 13, 2025, the plant had already shipped 125 kg of gold bars with 99.99% purity to ANTM. The plant is part of the area housing the Gresik copper concentrate smelter, which is the world's largest single-line smelter with an investment of USD 4.2 billion. Currently, the government has agreed to extend Freeport's export permit after a sulfuric acid fire at the plant caused production to halt.
Indonesia Officially Joins BRICS New Development Bank
President Prabowo officially announced Indonesia's membership in the New Development Bank (NDB). He made this decision during a meeting with NDB President Dilma Vana Rousseff in Jakarta, marking a strategic move to strengthen development partnerships with developing countries and multilateral institutions. Dilma stated she has received a list of 77 projects Indonesia wishes to complete and pledged to provide assistance. She believes Indonesia has clear medium- and long-term strategies and project lists, with mutual interests in infrastructure, logistics, railways, roads, ports, airports, digital connectivity, and also expressed interest in Indonesia's energy transition plan, praising Indonesia's achievements in biofuels, such as a 40% biodiesel blend ratio, far surpassing Brazil's 17%. The NDB is also interested in investing in science, education, technology, and innovation to create opportunities and quality jobs for national development. Dilma thanked Prabowo and stated that BRICS and Indonesia share common interests. Although Indonesia also participates in cooperation with other multilateral development banks, the eight NDB member countries are very happy about Indonesia's accession.
Indonesia Revises Royalty Rates for Multiple Minerals
The Indonesian government revises royalty tax regulations for the mineral and coal sectors to increase state revenue from the mining sector and explore revenue potential from other mineral derivatives. The current tax rate for coal applies a progressive rate based on the benchmark coal price (HBA) and a 14%-28% rate for IUPK. After revision, the rate will increase by 1% for HBA equal to or above USD 90/ton, up to a maximum of 13.5%; the IUPK rate of 14%-28% sees adjustments in its rate range. Nickel ore currently has a single rate of 10%, which will be revised to a progressive rate of 14%-19%; nickel matte currently has a single rate of 2% plus a windfall profit tax of 1%, revised to a progressive rate of 4.5%-6.5% with the windfall profit tax abolished; ferronickel currently has a single rate of 2%, revised to a progressive rate of 5%-7%; nickel pig iron (NPI) currently has a single rate of 5%, revised to a progressive rate of 5%-7%. Copper ore currently has a single rate of 5%, revised to a progressive rate of 10%-17%; copper concentrate currently has a single rate of 4%, revised to a progressive rate of 7%-10%; copper cathode currently has a single rate of 2%, revised to a progressive rate of 4%-7%. Gold currently has a progressive rate of 3.75%-10%, revised to a progressive rate of 7%-16%; silver currently has a single rate of 3.25%, revised to a single rate of 5%; platinum currently has a single rate of 2%, revised to a single rate of 3.75%; tin currently has a single rate of 3%, revised to a progressive rate of 3%-10%. The Minister of Energy and Mineral Resources stated that discussions on the increase of royalty taxes for the mineral sector are nearing completion.
Indonesian Government Allocates IDR 20 Trillion to Support Labor-Intensive Industries
The government led by President Prabowo plans to allocate IDR 20 trillion in 2025 to save and strengthen labor-intensive industries. The funds will be distributed through the Labor-Intensive Investment Credit Program, focusing on textiles, apparel, footwear, furniture, leather, children's toys, food and beverages, and other sectors. The program includes an 8-year interest subsidy of 5%, with loan amounts ranging from IDR 500 million to IDR 10 billion. Applicants must have a viable business, at least 2 years of experience, and employ at least 50 workers. The Coordinating Minister for Economic Affairs stated that the government has prepared IDR 20 trillion in the form of investment subsidies to support the machinery revitalization program for SMEs in labor-intensive industries.