Indonesia's First Nuclear Power Plant Site Selected in Bangka Belitung
Indonesia's first nuclear power plant will be built on Kelasa Island, over 400 km north of Jakarta, invested by Thorcon with a total investment of IDR 17 trillion. The prototype reactor will be shipped from South Korea in 2028, with commercial operations planned for 2030, and power transmission to PLN (State Electricity Company) by 2032, targeting an electricity price below 6.9 US cents per kWh. The plant uses thorium as fuel, leveraging the region's abundant tin resources. A 500 MW plant will be built first, with a second phase adding six more units, reaching a total of 3.5 GW. To address energy demand and transition, the Indonesian government plans to add 100 GW of power supply within 15 years, with 75% from renewable energy and 5% from nuclear. By 2050, more than 20 nuclear plants will be built, and by 2060, nuclear capacity will reach 45–54 GW. PLN is cooperating with multiple countries, and authorities have screened 29 potential sites, prioritizing nuclear projects in four provinces including Bangka Belitung.
Indonesia Market Insights and Overseas Expansion Guide: Summary of Wang掌柜's Live Stream Key Points
Future Development and Housing Market Prospects of the Jakarta Special Region
BYD and AION Receive Multiple Tax Incentives from Indonesian Government
Latest Fuel Prices at Indonesia's Four Major Gas Stations
Indonesia Nickel Industry Policy Adjustment: Smelters Will No Longer Receive Preferential Treatment
The government is reviewing incentives given to companies with nickel processing and refining facilities. With the increasing number of nickel smelters, the Deputy Minister of Energy and Mineral Resources stated that nickel smelting companies such as those producing nickel pig iron and ferronickel are no longer considered advanced industries, whereas previous incentives were largely based on the designation of advanced industry. The incentives currently under review mainly involve tax exemptions or tax holidays for rotary kiln electric furnace nickel smelters for a certain period. The Investment and Downstream Ministry has selected some projects that are no longer considered advanced industries in Indonesia, and has adjusted the classification of certain industries in implementation; other incentive mechanisms will be studied later.
Chinese Auto Brands Rise in Indonesia Market
After Wuling entered in 2017, more and more Chinese brands have come to Indonesia. According to sales data from the Indonesian Automotive Industry Association, at least 11 Chinese brands are selling in Indonesia. Besides Wuling, there are BYD, Chery, Dongfeng Xiaokang, Seres, Neta, Tank, BAIC, Haval, ORA, and GAC Aion. Wuling has the highest distribution, with wholesale sales of 18,667 units and retail sales of 22,288 units, successfully ranking among the top ten best-selling car brands in Indonesia. BYD, which debuted in Indonesia, will subsequently build a factory in Subang, West Java. Despite being a newcomer, it can compete with many Chinese brands and even Japanese brands.
Sales Ranking of Chinese Automotive Brands in Indonesia
According to data from the Indonesian Automotive Industry Association (Gaikindo), national wholesale car sales reached 865,723 units, a decrease of 13.9% (140,079 units) compared to the previous year. Currently, 12 Chinese brands including Wuling and BYD are competing in the Indonesian market. Wuling, which entered Indonesia in 2017, continues to lead sales among Chinese brands. Although BYD is considered a new entrant, it achieved the second-highest sales among Chinese brands in just seven months of sales, making it competitive against many Chinese and Japanese brands. Chery, from Wuhu, Anhui, delivered 1,449 vehicles to dealers in December 2024, a record high since entering Indonesia, with a market share of 1.1% in 2024, ranking third. MG, a brand under SAIC, ranked fourth in Chinese brand sales, while Aion entered the top five among Chinese automotive brands in Indonesia.
Prabowo to Crack Down on Illegal Smuggling to Protect State Revenue
President Prabowo stated that he continues to receive reports of illegal cases causing losses to the state, such as illegal mining, financial report manipulation, and tax arrears. He sees large amounts of wealth being smuggled, which is both illegal and unfair, as perpetrators profit without fulfilling their obligations. Prabowo vowed to take decisive action against individuals involved in these cases. He said he has sworn to uphold the constitution and legal authority, and that enforcing the law is his duty. To this end, he called on all sectors of society to abide by the law and refrain from illegal acts that damage state finances. He also conveyed this message to party cadres under his leadership, especially those who won regional head elections.
Indonesian Nickel Resource Companies' Performance Continues to Improve
PT Trimegah Bangun Persada Tbk (NCKL), known as Harita Nickel, delivered impressive financial results for the third quarter of 2024, with revenue for the first nine months reaching IDR 20.3 trillion, an increase of 18.02% year-on-year, largely contributed by the nickel processing and mining division. The Chinese Lygend-affiliated companies were the largest buyers, with transaction volumes growing significantly. Despite rising costs, gross profit and net profit still increased, and net profit attributable to the parent company's owners also grew. As a nickel enterprise, NCKL operates two mines to supply ore to its smelters, targeting the production of 120,000 tons of nickel pig iron and nickel. Through its HPAL refinery, it aims to produce 80,000-85,000 tons of MHP nickel, with ONC already operating at full capacity. NCKL is also exploring battery material development, with total assets of IDR 51.69 trillion and a manageable debt ratio, solidifying its leadership in the global nickel mining sector.
Indonesia Raises Retirement Age to 59
The Indonesian government has started raising the retirement age for Indonesian workers to 59 this year. According to government regulations, starting from 57 years old in 2019, the retirement age will increase by one year every three years until it eventually reaches 65. Workers who have reached retirement age and have contributed for at least 15 years can receive a monthly pension of IDR 300,000 to IDR 3,600,000. The annual pension amount will be affected by the inflation rate. Workers can apply for their pension within a maximum of three years after reaching retirement age.
Scope and Calculation Method of Indonesia's 12% VAT
The following is the calculation method for luxury house prices after the VAT increase: The PPnBM rates vary, with a minimum of 10% and a maximum of 200%. PPnBM belonging to the 20% tax rate group includes luxury residences such as non-stratified title houses and townhouses with a selling price of IDR 20 billion or more, as well as apartments, condominiums, and townhouses with a selling price of IDR 10 billion or more. If a company or developer sells a luxury house for IDR 20 billion, the house is a taxable item (BKP) subject to VAT and PPnBM of 20%. When the VAT rate is still 11%