Indonesia Plans to Include Nickel By-Products in Base Price Calculation
The Ministry of Energy and Mineral Resources plans to include by-product minerals generated during nickel mining—such as cobalt and iron—into the calculation scope of the Mineral Base Price (HPM), in order to clarify the economic value of by-product resources and drive an overall increase in mineral reference prices. The Director General of Minerals and Coal at the Ministry stated in Jakarta that this adjustment is in response to a proposal from the Indonesian Nickel Miners Association (APNI), by reasonably valuing by-product minerals like cobalt and iron and incorporating them into the pricing formula, thereby raising the overall mineral reference price. He emphasized that the focus of this reform is on modifying the pricing calculation formula, not on adjusting the frequency of price announcements. Currently, Indonesia's mineral reference price
Surging Textile Raw Material Prices in Indonesia Lead to Higher Garment Costs
The ongoing escalation of geopolitical conflicts in the Middle East has led to a sharp rise in international oil prices, directly impacting the upstream and downstream supply chains of Indonesia's textile industry, with strong concerns expressed about the sustainable business outlook. As petrochemical products, the core raw materials for the textile industry, rapidly rise in price, enterprises face soaring production cost pressures, which will gradually be passed on to the end market, triggering comprehensive price increases for garments and retail products. The chairman of the Indonesian Association of Synthetic Filament Producers (APSyFI) stated that the current price of paraxylene, the main raw material for polyester, has reached US$1,300 per ton, a sharp increase of approximately 40% from two weeks ago.
Glodon's Southeast Asia Strategy Upgrade: Full Localization of Software to Meet Indonesia's National Needs
Glodon, a Chinese-invested enterprise, recently sent its director and senior vice president to Indonesia for market research and client visits. They held in-depth discussions with Indonesia's Ministry of Public Works and Housing (PUPR) and CSCEC 8th Bureau Overseas Indonesia, completed a strategic cooperation award ceremony, and also negotiated cooperation with local enterprises and business associations such as Sinar Mas Group, Agung Sedayu Group, and the Indonesia Chinese Chamber of Commerce. Centered on key topics such as digital transformation, joint talent cultivation, and the implementation of global version quantity surveying software, this trip aligns with the needs of Indonesia's construction industry, marking Glodon's
Indonesia Releases 2025-2034 National Electricity Supply Plan
The Ministry of Energy and Mineral Resources recently released the 2025-2034 National Electricity Supply Plan (RUPTL), hailed as the "greenest" electricity development plan in history. The plan is guided by the National Electricity Master Plan and the National Energy Policy, aligning with the Prabowo-Gibran administration's priority strategies of energy sovereignty and energy transition. The government proposes adding 69.5 GW of power generation capacity over the next decade, with 76% coming from new energy and energy storage systems. Specifically, new energy capacity of 42.6 GW (17.1 GW solar PV, 11.7 GW hydropower, 7.2 GW wind power, etc.), energy storage systems of 10.3 GW, and fossil fuel capacity of 16.6 GW. Indonesia's solar PV potential reaches 3,294 GW, and the government will focus on advancing floating solar PV projects.
China and Indonesia Plan Joint Acquisition of Nickel Smelter
According to the Indonesian Nickel Miners Association (APNI), the Indonesian Investment Authority Danantara is expected to form a consortium with Chinese companies to jointly acquire the nickel smelter assets of PT Gunbuster Nickel Industry (GNI). The acquisition plan is still under development, with Danantara awaiting stakeholder approval and conducting due diligence, planning to proceed with mining state-owned enterprise parent company MIND ID as the main partner. Danantara intends to prepare approximately US$20 billion in initial acquisition funds, with an additional US$60 million in syndicated loan
Indonesia's Nickel Output Accounts for up to 63% of Global Total; Overcapacity Causes Nickel Price Plunge
According to the Indonesian Nickel Miners Association (APNI), Indonesia currently controls 63% of the world's total nickel output. Since 2022, Indonesia's share of global nickel production has reached 50% and continues to increase annually. In 2022, Indonesia contributed 50% of the global nickel supply surplus; in 2023, 31%; and in 2024, 16%. From 2023 to 2024, the total global nickel output surplus was approximately 500,000 tons, mainly from Indonesia, which has led to a sharp drop in global nickel prices. The Indonesian nickel industry has lower costs, as its mines still use open-pit mining without the need for high-cost complex
Indonesia Exempts Synthetic Fiber from China from Anti-Dumping Duties
The Minister of Trade recently decided to exempt imports of certain synthetic filament yarns from China from anti-dumping duties. This policy is based on a comprehensive assessment of the domestic textile industry's current situation and input from relevant stakeholders. Domestic production capacity for certain synthetic filament yarns cannot meet downstream industry demand, as most manufacturers produce only for their own use, resulting in limited market supply. Continuing to impose anti-dumping duties would increase production costs for downstream industries and weaken their market competitiveness. Minister of Finance Regulation No. 46 of 2023 already imposes safeguard duties on polyester staple fibers from India, China, and Taiwan. Affected by the COVID-19 pandemic, the textile industry's contribution to GDP
Indonesian Industry Calls for Anti-Dumping Tariffs on Chinese Textiles
The Indonesian Fiber and Filament Producers Association has proposed imposing an anti-dumping import duty of at least 20% on imported filament products (mainly from China) to enhance the competitiveness of the domestic textile industry. The tariff is intended to counteract the "dumping" practices of foreign producers, which have severely weakened the production capacity and competitiveness of Indonesia's textile industry from upstream to downstream. Dumping has led to domestic price distortions, and the 20% tariff is considered an "ideal point" to balance the upstream and downstream industries, helping the upstream sector recover while avoiding excessive burden on the downstream. The association chairman stated that the Indonesian Anti-Dumping Committee's preliminary recommendations had a wide range of tariffs
Chinese Flavor Company Invests in Building Factory in Indonesia
Chinese food flavor manufacturer Huabao Flavours & Fragrances Co., Ltd. recently held a groundbreaking ceremony for a food seasoning factory in the Jababeka Industrial Estate in Bekasi, West Java, which will serve as its base for the Southeast Asian market. Huabao aims to strengthen localization of product development, customer service, and operational coordination through this project, driving high-quality growth in the Southeast Asian region. The new factory will integrate production, R&D, and office functions, targeting markets including Indonesia, Vietnam, Malaysia, and Thailand. Founded in 1996, Huabao produces a variety of food seasonings, beverage flavors, and fragrance products. Its Indonesian subsidiary, Huabao Food Technology, was established in 2021. The Indonesian Food and Beverage Manufacturers Association and the Indonesian Fragrance Association attended the groundbreaking ceremony, expressing appreciation for Huabao's investment in Indonesia, believing it will support the development of the local industry. Representatives from the Bekasi district government stated that the establishment of the new factory will help reduce local unemployment, and the local government also pledged to help the company find suitable labor.
US-China Trade War Causes Chinese Textile Products to Flood into Indonesia
The US-China trade war has made it difficult for some Chinese products to enter the US market due to high tariffs, causing them to flood into Indonesia instead, including clothing and other products. This has raised concerns among local Indonesian textile industry practitioners, such as local pajama sellers expressing worries about the industry's prospects. The chairman of the Indonesian Fiber and Filament Manufacturers Association pointed out that the influx of Chinese clothing products and the increase in tariffs on exports to the US will impact the upstream and downstream sectors of Indonesia's domestic clothing production. It is estimated that approximately 125,000 people in the filament production sector alone face unemployment. The Minister of Industry acknowledged the issue of imported clothing flooding in during the US-China trade war but did not specify the source of the products. He stated that transshipment issues have exacerbated the phenomenon and proposed strengthening the management of certificates of origin, adding that the government will help the domestic textile industry cope with economic uncertainty. Economists believe that regardless of how the Indonesian government negotiates, Indonesia will actually become more dependent on China in trade. Because there are restrictions on US products entering Indonesia, Chinese products have more advantages in entering the Indonesian market when non-tariff measures are relaxed. The association chairman suggested that the Indonesian government take a series of measures, such as imposing safeguard tariffs and anti-dumping tariffs, and strictly controlling the issuance of certificates of origin for Indonesian export products, to protect domestic industries from the impact of imported products.
Chinese E-commerce Platforms Banned from Entering the Indonesian Market
Chinese e-commerce platforms Temu and Shein had planned to expand into the Indonesian market and were even listed on Apple and Google app stores in Indonesia. However, the Indonesian government intervened directly and banned their operations in the country due to concerns that their business model could impact local small and medium enterprises. These platforms sell goods directly from Chinese manufacturers to end consumers without intermediaries, offering low prices that squeeze the survival space of local producers. In the United States, these platforms have become popular due to their prices being significantly below market levels, but the Trump administration's policies pose threats.
Import License Issues Hinder Development of Indonesian Liquor Companies
In early 2025, members of the Indonesian Alcoholic Beverage Importers Association reported difficulties in selling their products due to incomplete issuance of alcoholic beverage import licenses. Currently, only 9 out of 17 member importers have obtained licenses, and the association is unaware of the reasons for the remaining 8. According to regulations, license applications through the trade system should only take 5 business days. The association has sent a complaint letter to the Ministry of Trade but has received no response. The license issue may lead to unfair competition and could allow illegally imported alcoholic beverages to enter the market. Additionally, since last year, the demand for imported alcoholic beverages has been slowing, linked to global and domestic economic uncertainty and declining public purchasing power.
Indonesia's Investment Ministry Reminds Chinese Investors to Be Cautious in Finding Industrial Land
The Indonesian government reminds investors to be cautious when selecting industrial land, as investors often choose the wrong land type, leading to obstacles in factory construction. Chinese investors in particular need to pay attention and should consult with the government. Manufacturing investment in Indonesia has been growing year by year, with investment value increasing 2.7 times from 2018 to 2023. Singapore's investment contributes significantly, some of which may come from Chinese investors. The mining and food industries are the most encouraged. The Chairman of the Indonesian Food and Beverage Producers Association stated that Chinese entrepreneurs are welcome to invest, which can add value, and expressed hope that domestic industries can cooperate to solve raw material supply issues. The President of the China Import and Export Food Chamber said that the chamber is optimistic about its potential to contribute to Indonesia's food and beverage industry, paying attention to the President's free nutritious meal program. Last year, China-Indonesia food trade reached USD 12.8 billion, with strong import and export performance.
Indonesian Local Textile Industry Complains Imported Goods Impacting the Indonesian Market
The General Chairman of the Association of Counterflow Entrepreneurs stated that over the past two years, a large number of imported goods have flooded in, causing 60% of small and medium-sized enterprise members to cease operations and 50% to struggle to survive. Due to the low prices of imported goods, suspected to be illegal imports, local enterprises find it difficult to compete and have laid off workers and closed factories. He hopes to secure a larger market for textile SMEs domestically, believing that Indonesia has strong purchasing power and low inflation. If the local market controls at least 70%, SMEs will progress. The Chairman of the Indonesian Fiber and Filament Producers Association urged the government to pay attention to the wholesale/incubation import model, such as distinguishing between red and green channel imports at ports, pointing out that the government has relaxed imports, such as issuing trade regulations
Indonesia's Domestic Textile Industry Problems Are Becoming Increasingly Acute
The national textile industry is in serious trouble. The bankruptcy declaration of PT Sri Rejeki Isman Tbk or Sritex has sounded an alarm, requiring immediate government intervention to correctly diagnose and provide a panacea to revitalize the labor-intensive textile industry and domestic textile products. Sritex has long been a symbol of Indonesia's high-quality textile industry. The Executive Director of the Indonesian Textile Association (API) stated that if such a large factory can collapse, it means there are things that must be noted. It is necessary to examine what caused Sritex's downfall—whether it was internal
Food and Beverage Industry Hit by Mass Layoffs Due to Indonesian Health Regulations
The Ministry of Manpower (Kemenaker) has responded to the threat of mass layoffs in the food and beverage industry (mamin) caused by government regulations (PP) on health. The Director of Industrial Relations Development and Employment Social Security (PHI-JSK) at the Ministry of Manpower confirmed that, so far, they have not received any reports of layoffs in the food and beverage industry. Even so, she stated that the health program should not be viewed solely from its negative impacts; this regulation is considered a driving force for the food and beverage industry to encourage a healthy lifestyle among people. Do not focus only on the workforce, as in reality there have been no
Over 150,000 Indonesian Textile Workers Lost Their Jobs
Chairman of the Indonesian Fiber and Filament Producers Association (APSyFI) stated that currently 21 textile companies in Indonesia have closed, and 31 textile factories are facing the threat of closure. Since the end of 2022, the capacity utilization level of textile factories has begun to decline. By the second quarter of 2022, the utilization rate was only 72%. Many textile and garment companies that are members of APSyFI have closed. So far, the utility of the industry continues to decline. According to the association's records, it is now only 45%. Since Covid-19, the capacity utilization level has been declining, and the textile industry
6th China Trade Expo Opens in Indonesia
At the Jakarta International Expo, the 6th China (Indonesia) Trade Expo (referred to as the "Indonesia Expo") grandly opened, attracting nearly 400 enterprises from Guangdong, Zhejiang, Jiangsu, Sichuan, Jiangxi and other regions to participate, with an exhibition area of over 15,000 square meters and more than 500 booths. This grand event showcased tens of thousands of manufactured products from China, demonstrating the strength and charm of Made in China to Jakarta. As the fourth most populous country in the world and the largest economy in ASEAN, Indonesia's
The Future of Indonesia's Retail Industry: A Fusion of Tradition and Modernity
Indonesia's retail industry is undergoing a significant transformation, combining traditional models with modern convenience. According to Bank Indonesia, retail sales in December 2023 grew by 4.9% month-on-month, driven by holiday promotions, marking the largest increase in eight months. Traditionally dominated by community markets and grocery stores, the industry has been modernized in recent years by government policies and an influx of foreign capital. A 2021 McKinsey study shows that 77% of retail transactions in Indonesia are conducted through traditional channels, while modern channels such as supermarkets and hypermarkets account for only 23%. To unleash