Indonesia and LG Strengthen Cooperation in Clean Energy and Electric Vehicles
The Coordinating Minister for Economic Affairs received the Executive Vice President of LG Chem Advanced Materials Company and his delegation at the Coordinating Ministry office. They discussed opportunities and challenges in the electric vehicle sector, as well as LG Chem's cooperation and investment potential in Indonesia. He stated that LG Group's support for Indonesia's EV ecosystem and clean energy development is very important and hoped to further strengthen it. Both parties agreed that Indonesia has great potential for EV development, despite the challenges of declining global demand. The LG Chem representative expressed gratitude for the Indonesian government's support and emphasized Indonesia as a strategic partner. LG Chem introduced its
Geely Automobile Develops Rapidly in the Indonesian Market
China-Indonesia Cooperation Promotes the Two Countries, Twin Parks Project
Indonesian Minister of Industry Hopes Automakers Lower Prices to Boost National Purchasing Power
Indonesia's Shenzhen-like Plan Launched: IDR 16 Trillion Investment, 27 Enterprises Settle In
Indonesian Government Encourages Textile Industry Investment with Multiple Measures
Indonesia is committed to strengthening its domestic textile industry through various initiatives. The Coordinating Minister for Economic Affairs emphasized that the textile and textile products industry makes a significant contribution to the national economy, with exports exceeding USD 2 billion and providing nearly 4 million jobs, though licensing issues still need improvement. The government's goal is to finalize the Indonesia-EU Comprehensive Economic Partnership Agreement to increase textile exports to the European market and enhance global competitiveness. In addition, the government has prepared an investment subsidy program of IDR 20 trillion for machinery revitalization in labor-intensive industries such as textiles, with an eight-year credit term and a 5% government-subsidized interest rate to improve production efficiency. The National Economic Council
Chinese Enterprises Study Indonesia Coal Gasification Project
Energy and Mineral Resources Ministry says four Chinese enterprises are studying coal gasification to dimethyl ether (DME) project to replace liquefied petroleum gas (LPG). Each enterprise's research results differ; some consider the project infeasible in Indonesia, others derive different internal rates of return. The Ministry requires these enterprises to provide calculation examples so that the project study is not just theoretical. Currently, all countries prioritize their own interests; the chairman of the relevant parliamentary committee suggested that the government not rely solely on one country when advancing Indonesia's coal DME project technology. The Minister of Energy once mentioned that the project would adopt U.S.
Fujian Invests IDR 16 Trillion in Batang Special Economic Zone
Indonesia plans to establish six new special economic zones, five of which are located in Sidoarjo, East Java; East Kutai, East Kalimantan; Bulungan, North Kalimantan; and Subang, West Java. The Chief Economic Minister stated that the Fujian Provincial Government of China plans to invest IDR 16 trillion in the Batang Special Economic Zone in Central Java. Xinhua News Agency reported in September last year, citing his remarks, about the plan to establish new special economic zones. Reuters reported that he stated President Prabowo and Chinese leaders discussed this investment plan, but he did not disclose further details. He also mentioned that President Prabowo plans to visit the Batang Special Economic Zone on March 20.
Deputy Minister of Industry Says Indonesia Could Become Destination for Chinese Factory Relocation
The Deputy Minister of Industry believes that due to the escalating trade war between China and the US, Indonesia has a great opportunity to become the relocation site for hundreds of Chinese factories. Indonesia will not be directly affected by the trade war or US tariff increases because it maintains good trade relations with the US. He mentioned that 630 furniture companies from China have relocated to Vietnam. Compared to Vietnam, Indonesia has an advantage because Vietnam is more likely than Indonesia to be affected by Trump's tariff increases. The Ministry of Industry will encourage domestic enterprises to actively attract investors. Given that Vietnam may become a target for Trump, he believes Indonesia will at least attract some factories to relocate. If Vietnam is affected by the trade war,
Indonesia's Imports of Chinese Textiles Decline in February
Data from the Central Statistics Agency shows that in February 2025, Indonesia's imports of textiles and textile products from China decreased by US$141.1 million month-on-month, a drop of 36.6%. The total import value for the month was US$606.8 million, down 20.74%. Meanwhile, the largest export destination in February was the United States, with exports reaching US$17.4 million, an increase of 4.13% from January. Total exports for the month reached US$1.02 billion, and Indonesia's trade surplus with the US was US$1.57 billion. Additionally, the Ministry of Industry recorded a surge in investment in the domestic textile, apparel, and footwear industries. Investment was only IDR 29.92 trillion in 2023,
Luckin Coffee Establishes Exclusive Coconut Island in Indonesia
Luckin Coffee recently signed a Memorandum of Understanding with the Banggai Islands Regency Government in Indonesia, securing the Banggai Islands as an exclusive origin for coconut milk used in its Coconut Latte, naming it the "Luckin Coffee Exclusive Coconut Island" with exclusive procurement rights for coconut resources, planning to purchase approximately 1 million tons of coconut raw materials over the next five years. This is part of Luckin's efforts to advance upstream supply chain construction and high-quality origin layout, not only promoting systematic development of coconut resources locally but also driving local sustainable development through technical support and community co-building. The cumulative sales of Coconut Latte have exceeded 1.2 billion cups, making Luckin one of the beverage brands with the highest coconut consumption in China.
Chinese Companies Participate in Construction of Smart Tunnel in Indonesia's New Capital Nusantara
Indonesia's new capital continues to attract investors from various countries, including China. The Nusantara Capital Authority has issued a construction permit to PT China Harbour Indonesia to participate in the construction of roads and a multi-purpose tunnel project worth IDR 70 trillion. The infrastructure includes a 138.6-kilometer smart tunnel that will serve as the backbone of the new capital's utility network. The project also involves other companies, including state-owned enterprises such as PT Brantas Abipraya and PT Hutama Karya, demonstrating