Indonesia to Intensify Raids on Foreign Workers
The Minister of Manpower recently stated that the Ministry of Manpower is preparing to conduct raids or investigations into violations such as foreign workers holding tourist visas while working in Indonesia. Alongside the inspections, preparations are also underway related to the status and capability of labor supervisors within the provinces. The inspection task will be carried out by the Deputy Minister of Manpower, who previously achieved significant results in handling cases of employers withholding workers' diplomas. He also mentioned that regulations on foreign worker permits are being tightened. The Yogyakarta City Government has strengthened oversight of foreign workers to prevent them from abusing tourist visas for illegal work. The Deputy Mayor noted that the large number of foreign tourists visiting Yogyakarta can easily lead
Indonesia's EV Subsidy Policy Still Undecided
Chinese Embassy in Indonesia Conducts Consular Document Services Survey
Chinese E-commerce Platforms Banned from Entering the Indonesian Market
Indonesia Takes Multiple Measures to Address High U.S. Tariffs
Indonesian Government Sets China as Top Export Market
Trade Minister plans to increase export value by 7.1% in 2025 to reach US$294 billion (approximately IDR 4,851 trillion), hoping to drive economic growth to 8%. In 2024, Indonesia's export value was US$24.883 billion. If the 7.1% growth target is achieved, export value in 2025 will increase significantly. China, the United States, Japan, India, and Malaysia are the main target markets, with China contributing the most, reaching US$602.2 billion. The Ministry of Trade will use targeted strategies to develop and stimulate export markets led by China to promote export growth. The Ministry will also assist small and medium enterprises
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%;
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.
Indonesia's Shenzhen-like Plan Launched: IDR 16 Trillion Investment, 27 Enterprises Settle In
Breaking news! On March 20, 2025, Indonesian President Prabowo personally visited the Batang Industrial Area in the Central Java industrial belt, crowning this rising industrial star with the title of "National Special Economic Zone" and benchmarking it as "Indonesia's version of Shenzhen," vowing to create a demonstration model for integrating 300 million citizens into the global industrial chain. Along with the announcement by Fujian Provincial Government of a strategic investment of IDR 16 trillion (approximately RMB 7.2 billion), the China-Indonesia "Two Countries, Twin Parks" cooperation has officially entered a golden age, opening a window of opportunity for Chinese investors to expand in Southeast Asia. Since 2021, the two
Indonesia Plans to Impose Royalties on Various Metals
The cobalt price on the London Metal Exchange today is USD 29,210 per ton, up 5.26% from the previous trading day's close, while the nickel price is USD 16,493 per ton, down 0.35%, far below the record high prices from 2022-2023. The cobalt content in nickel ore traded in 2023-2024 was approximately 0.1%. If royalties are imposed on cobalt, the government could increase revenue by around USD 600 million. Some have proposed that the government impose royalties on associated cobalt in nickel ore, rather than raising the progressive royalty rate on nickel ore itself. Currently, cobalt is not included in the mineral categories subject to royalties.
East Java Province Engages in Multi-Field Cooperation with China
The Governor of East Java met with Chinese Consul General in Surabaya, Xu Yong, in Surabaya. The Consul General conveyed congratulatory letters from the Mayor of Shanghai and the Mayor of Tianjin on her appointment as Governor of East Java, and also congratulated her and the people of East Java on their fasting. Both sides discussed the potential for cooperation between East Java and China in areas such as livestock technology, health, and social culture. In the livestock sector, she hopes to carry out technical exchanges on dairy cow seeds to increase milk production in East Java. In the health sector, she looks forward to cooperating with China to improve the medical technology of the two largest hospitals in East Java. Both sides also emphasized cooperation with sister provinces of Shanghai and Tianjin, hoping to enhance cultural