China's Xinjiang Signs Multiple Investment and Industrial Synergy Agreements with Indonesia
The China Committee of the Indonesian Chamber of Commerce and Industry (KADIN) and the Xinjiang Production and Construction Corps jointly hosted the "China (Xinjiang) - Indonesia Economic and Trade Exchange" in Jakarta. Both sides reaffirmed their commitment to deepening economic cooperation in multiple fields, extending beyond trade to cover supply chain development, halal industry strengthening, and creating long-term mutually beneficial opportunities. The cooperation is based on mutual respect, reciprocity, and the large Muslim populations of both sides, and Xinjiang's industrial strengths in agriculture, logistics, energy, and healthcare align with the priorities of President Prabowo's government. Additionally, in the first five months of 2025, bilateral trade between Indonesia and China reached
Anhui Explores Bilateral Strategic Investment Opportunities in New Capital
Chinese Investment Influx Drives Indonesian Land Prices Up by 25%
China and Japan Interested in Competing for Jakarta-Surabaya High-Speed Rail Project
Robbery at IMIP Park Severely Shakes Investor Confidence in Nickel Industry
Indonesia's Car Sales May Drop to 800,000 Units This Year
Automotive industry analysts predict that if related issues are not resolved in time, Indonesia's car sales in 2025 could fall below 800,000 units, unless macroeconomic growth significantly recovers in the second half of the year. In July 2025, wholesale deliveries from car factories to dealers reached 60,552 units, up 4.8% month-on-month (June: 57,799 units), but down 18.4% year-on-year (July 2024: 74,230 units). Retail sales in July 2025 totaled 62,770 units, up 1.8% month-on-month, but down 17% year-on-year (July 2024: 75,588 units). January-July 2025
Indonesian Company Invests Over Trillion Rupiah to Build AI Data Center
PT Dian Swastatika Sentosa Tbk (DSSA), a subsidiary of the Sinar Mas Group, through its subsidiary PT Kuningan Mas Gemilang (KMG), has signed an agreement with PT LG Sinarmas Technology Solutions (LGSM) for the latter to construct the SMX01 data center, with a project value of IDR 1.23 trillion (excluding taxes and other fees). The project is positioned as an AI-ready data center, located in the Jakarta business district, with p
US 19% Tariff on Indonesian Goods May Boost Competitiveness
The US imposes a 19% import tariff on Indonesian products. The Trade Minister believes this could actually enhance the competitiveness of Indonesian products in the US market. He considers the 19% tariff relatively low, as ASEAN members Malaysia, Thailand, and the Philippines also face the same rate, while major competitors like China, Vietnam, and India face tariffs higher than 19%, giving Indonesia a better competitive edge. Indonesia's access to the US market is more open than before, especially after the implementation of reciprocal tariffs, providing a better starting point compared to other countries. It is expected that under the new tariff policy, Indonesian exports to the US will increase, and the government will encourage businesses to fully leverage this opportunity. From January to June 2025, Indonesian exports to the US grew by 7.7%, making the US Indonesia's second-largest export destination after China, with a trade surplus of US$9.9 billion. The new US tariff policy took effect on August 7, 2025, introduced by President Trump through an executive order as part of reciprocal tariff measures. Singapore faces a lower tariff (10%), while Laos, Myanmar, and others face tariffs exceeding 35%. Indonesia has completed tariff negotiations with the US, and the Coordinating Minister for Economic Affairs stated that tariff arrangements for Southeast Asian countries have been largely agreed upon, providing a level playing field for Indonesia's advantageous industries.
Indonesia's export value exceeds US$130 billion in the first half of this year
In the first half of 2025, Indonesia's export value reached US$135.41 billion (approximately IDR 2,220 trillion), a 7.7% increase compared to US$125.73 billion in the same period last year. The trade surplus increased to US$19.48 billion (approximately IDR 319 trillion), compared to US$15.68 billion (approximately IDR 257 trillion) in the same period last year. The main export destination was the Taiwan region of China, followed by the United States, India, Japan, and Malaysia. The largest surplus was with the United States, reaching US$9.9 billion (approximately IDR 162.36 trillion), followed by India, the Philippines, Malaysia, and Vietnam. The ASEAN region contributed the largest trade surplus
Indonesian Investment Agency to Resolve Jakarta-Bandung High-Speed Railway Debt Issues
The Indonesian Investment Authority (BPI Danantara) will intervene to resolve the losses and debt issues of state-owned construction companies caused by the Jakarta-Bandung High-Speed Railway (Whoosh) project. Danantara's Chief Operating Officer stated that Danantara is preparing solutions for debt payments related to the high-speed railway project and the restructuring of state-owned enterprises participating in the project consortium. This high-speed railway project is part of the work program for the restructuring cluster of Danantara Asset Management Company, expected to be completed by the end of the year. Danantara will propose several alternative steps to the government to resolve the project's debt issues.
List of Indonesia's Main Export Commodities in the First Half of This Year
In the first half of 2025, Indonesia's non-oil and gas exports to the United States reached USD 14.79 billion (approx. 243.91 trillion rupiah), accounting for 11.52% of Indonesia's total non-oil and gas exports. The US is the second largest destination for Indonesia's non-oil and gas products. Indonesia's largest destination for non-oil and gas products is China, with exports of USD 29.31 billion in the same period. From January to June 2025, Indonesia's merchandise trade surplus reached USD 19.48 billion, with a surplus of about USD 4.1 billion in June; the non-oil and gas surplus in June was USD 5.22 billion, while oil and gas trade recorded a deficit of USD 1.11 billion. Main exports
China's Investment in Indonesia Surpasses Japan and Malaysia
The Investment Ministry/Investment Coordinating Board recorded that the investment realization in the first half of 2025 reached 942 trillion rupiah, a year-on-year increase of 13.6%, equivalent to 49.5% of the government's 2025 investment target of 1,905.9 trillion rupiah. Foreign direct investment contributed 432.6 trillion rupiah, while domestic investment contributed 510.3 trillion rupiah. Japan was once one of Indonesia's main and stable investors, but its investment has been declining over the past six years. In the first half of 2019, it ranked second with 2.4 billion USD, but in the first half of 2025, it only reached 1.6 billion USD, ranking last among the top five foreign investors. China's investment has grown significantly, from only 297 million USD in 2013 (ranking 12th) to third place in 2017; in the first half of 2019, it reached 2.3 billion USD (ranked third), and in the first half of 2025, it reached 3.6 billion USD. Malaysia experienced fluctuations: 1 billion USD in the first half of 2019 (fifth place), surged to 5.9 billion USD in the first half of 2020 (third place), did not enter the top five in 2023-2024, and returned to fourth place in the first half of 2025 with 1.7 billion USD, surpassing Japan, showing strong interest in the Indonesian market. These data exclude the COVID-19 pandemic period (2020-2022) due to low economic activity.