Category: Goverment

Investment realization from January to December 2025 reached IDR 1,931.2 trillion. According to Minister of Investment and Downstreaming and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani, the figure represents a 12.7 percent year-on-year (yoy) increase.

The realization exceeded the 2025 target of IDR 1,905.6 trillion, achieving 101.3 percent of the goal. In terms of regional distribution, investment in Java totaled IDR 940.0 trillion, or 48.7 percent, while regions outside Java absorbed IDR 991.2 trillion, or 51.3 percent.

Foreign direct investment (FDI) amounted to IDR 900.9 trillion, accounting for 46.6 percent of total investment, while domestic direct investment (DDI) reached IDR 1,030.3 trillion, or 53.4 percent. The investment realization created employment for 2,710,532 people nationwide.

“Thank God, I can announce that the 2025 investment realization target of IDR 1,905.6 trillion has been achieved and even slightly exceeded. Throughout 2025, from January to December, total investment realization reached IDR 1,931.2 trillion,” Rosan said at a press conference at the Ministry of Investment and Downstreaming in South Jakarta on Thursday, Jan. 15, 2026.

Singapore emerged as the largest foreign investor with US$17.4 billion in realized investment, followed by Hong Kong with US$10.6 billion. China ranked third with US$7.5 billion, followed by Malaysia at US$4.5 billion and Japan at US$3.1 billion.

Investment realization in the fourth quarter of 2025 stood at IDR 496.9 trillion, up 29.8 percent year-on-year and 1.1 percent quarter-on-quarter. This figure represented 26.1 percent of the full-year 2025 investment target.

During the fourth quarter, investment in Java reached IDR 247.5 trillion, accounting for 49.8 percent, while regions outside Java absorbed 50.2 percent. Foreign direct investment totaled IDR 256.3 trillion, or 51.6 percent, while domestic direct investment amounted to IDR 240.6 trillion, or 48.4 percent.

January 16, 2026, detikFinance

(https://finance.detik.com/berita-ekonomi-bisnis/d-8309628/investasi-ri-tembus-rp-1-931-t-paling-banyak-di-luar-jawa)

The administration of Indonesian President Prabowo Subianto is preparing six new downstream projects, with construction scheduled to begin in February 2026. President Prabowo said work on at least six projects would start in the coming weeks.

“At least six downstream projects, possibly up to eleven. The value is approximately US$6 billion, or around IDR 101.05 trillion, and we will receive massive foreign investment. I estimate the investment will be quite substantial,” Prabowo said at the inauguration of the Balikpapan Refinery Development Master Plan (RDMP) in East Kalimantan, as quoted on Tuesday, Jan. 13, 2026.

Prabowo has instructed cabinet ministers to prepare personnel, including management teams, to oversee and manage the upcoming downstream projects.

“In total, we need at least 10, 15 or even 20 years to achieve proper industrialization, but we want to accelerate the process,” he said.

Previously, on Sunday evening, Jan. 11, 2026, President Prabowo convened a meeting with several cabinet ministers at Hambalang, Bogor, where the six downstream projects were discussed.

“Preparation for the groundbreaking of six new downstream projects worth US$6 billion is planned for early February 2026,” the Cabinet Secretariat wrote in a post on its official Instagram account, @sekretariat.kabinet, quoted on Tuesday.

The meeting was attended by Coordinating Minister for Economic Affairs Airlangga Hartarto, Energy and Mineral Resources Minister Bahlil Lahadalia, and Minister of Investment and Downstreaming and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani, who also heads Danantara.

Earlier, Rosan revealed details of six strategic downstream projects scheduled to be developed in stages starting in early 2026. The projects span sectors including mining, renewable energy and agribusiness.

“I recall the bauxite and aluminum projects in Mempawah, then refineries in Cilacap and Banyuwangi. There are five in total,” Rosan said at the Presidential Palace complex on Dec. 8.

Rosan outlined the six projects as follows: the development of an aluminum smelter from alumina in Mempawah, West Kalimantan, valued at US$2.4 billion; a Smelter Grade Alumina (SGA) facility from bauxite in the same region worth US$890 million; a bioavtur production facility in Cilacap, Central Java, valued at US$1.1 billion; an integrated coconut processing facility in Morowali, Central Sulawesi, worth US$100 million and already under construction; a bioethanol facility valued at US$80 million; and five poultry farming facilities across 12 locations.

The government has also launched 18 downstream projects under Danantara, covering mineral, chemical and plantation-based processing industries.

Meanwhile, State Secretary Prasetyo Hadi said at least six downstream projects would be officially inaugurated this month, with construction on 18 projects scheduled to take place in February and March. These include a waste-to-energy power plant (PLTSa) and coal gasification projects producing dimethyl ether (DME) as a substitute for liquefied petroleum gas (LPG).

January 13, 2026, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20260113102500-4-701871/prabowo-siapkan-6-proyek-baru-nilainya-rp1015-triliun)

Sluggish household spending has weighed on Indonesia’s retail sector, with estimated growth below 5 percent in 2025. However, the beauty industry continues to post solid gains and is projected to keep expanding in 2026, supported by steady demand across physical and online channels.

While food and beverages (F&B) remain the largest retail segment in the country, beauty recorded the strongest growth last year, according to the Indonesian Retail and Tenants Association (Hippindo). “In terms of percentage growth, [beauty retail] is the highest,” Hippindo chairman Budiharjo Iduansjah said. “Beauty growth is in double digits. If other categories grow at around 5 to 10 percent, beauty can reach 12 to 15 percent annually. That is same-store growth,” he told The Jakarta Post on Dec. 30.

The resilience of beauty product sales is also reflected in online transactions. Personal care products, including cosmetics and body care items, continued to rank among the most frequently purchased goods on e-commerce platforms in the third quarter of 2025, Statistics Indonesia (BPS) data show. The Indonesian E-commerce Association (idEA) said the beauty and personal care segment was “a favorite” among online shoppers throughout 2025.

While global brands continued to dominate the premium segment, consumer behavior last year showed growing openness to domestic brands, particularly outside the premium price range, idEA secretary-general Budi Primawan told the Post. “In beauty, local brands had a strong year. Many domestic cosmetic brands grew faster than global players, especially in the mass and mid-range segments,” he said. He attributed this to local brands’ understanding of skin needs, pricing, halal positioning and social media-driven storytelling.

The association expects e-commerce growth to accelerate, supported by repeat-purchase categories. “Beauty, fashion basics and everyday essentials will likely remain key drivers. The focus will shift from heavy discounts to trust, content and consistency,” Budi said.

Coordinating Economy Minister Airlangga Hartarto praised the cosmetics industry’s performance, noting that it generated revenue of around IDR 35.6 trillion (US$2.1 billion) in 2025 and was projected to grow 4.73 percent annually. He said personal care, skincare and make-up remained the main contributors, in line with rising awareness of self-care and product quality. Spending on clothing, footwear and personal care services also supported economic growth in the third quarter of 2025.

On the production side, the Food and Drug Monitoring Agency (BPOM) and the Indonesian Cosmetics Companies Association (Perkosmi) reported that the number of cosmetics companies reached 1,500 as of October 2025, up from 1,292 a year earlier, with 87 percent classified as small and medium-sized enterprises (SMEs). Registered cosmetic products rose by more than 50,000 in 2025, bringing the total to over 343,000 nationwide.

Despite the expansion, Indonesia remains a net importer in certain cosmetic categories. In the first 10 months of 2025, exports of essential oils, fragrances and cosmetics totaled $97.8 million, while imports reached $147.7 million, BPS data show. The government has introduced regulatory measures to strengthen local manufacturers, including mandatory halal certification for cosmetics starting in 2026. Industry Minister Agus Gumiwang Kartasasmita said the policy would enhance trust and competitiveness, particularly in Muslim-majority markets, while enabling SMEs to highlight local heritage, traditional beauty practices and natural ingredients. Looking ahead, Airlangga said Indonesia’s 75 million Generation Z consumers and recent trade diplomacy efforts, including the Indonesia–European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), offer strong potential for local beauty brands to expand globally.

January 10, 2026, The Jakarta Post

(https://www.thejakartapost.com/business/2026/01/10/indonesian-beauty-brands-ride-industry-boom-eye-global-market.html)

Indonesia posted a trade surplus of US$2.66 billion in November, despite a surge in capital goods imports and weaker commodity exports. The surplus exceeded October’s $2.39 billion, extending the country’s run of monthly surpluses to 67 consecutive months.

“The trade surplus was primarily underpinned by non-oil and gas commodities, particularly animal and vegetable fats and oils, iron and steel, as well as nickel and related products,” Statistics Indonesia (BPS) Deputy for Distribution and Services Pudji Ismartini said at a press conference on Monday. These categories generated a combined surplus of $4.64 billion in November, she added.

Exports in November fell 6.6 percent year-on-year to $22.52 billion, dragged down by lower shipments of key commodities including coal, palm oil, nickel, and copper, BPS data show. Mining products bore the brunt of the slowdown, falling 32.88 percent year-on-year, while manufacturing exports declined 5.09 percent. Coal export volumes stood at 34.17 million tonnes, down 2.72 percent year-on-year, while crude palm oil shipments totaled 1.36 million tonnes, plunging 28.86 percent.

Imports edged up 0.46 percent year-on-year to $19.86 billion, supported by strong capital goods purchases, which jumped 17.27 percent from a year earlier. Raw material imports declined 3.56 percent, while consumer goods imports slipped 1.76 percent.

Over the January-November 2025 period, Southeast Asia’s largest economy posted a cumulative trade surplus of $38.54 billion. Non-oil and gas trade recorded a surplus of $56.15 billion in the first 11 months of 2025, offsetting a $17.61 billion deficit in oil and gas trade. The United States remained Indonesia’s largest surplus contributor at $16.54 billion, up 27.5 percent from a year earlier, far ahead of runner-up India at $12.06 billion. Jakarta is still in talks with Washington over “reciprocal” tariffs, which the US has linked to Indonesia’s sizable trade surplus, with both sides aiming to sign a trade deal by the end of the month. Meanwhile, Indonesia’s largest trade deficit was with China, widening to $17.74 billion from $9.55 billion a year earlier.

Bank Danamon economist Hosianna Situmorang noted that the export contraction was driven by a sharp decline in coal shipments, particularly to China and India, amid weak global prices and a high base effect. “Looking ahead, export duties on gold and coal may weigh on export performance in 2026, compounded by lower palm oil volumes due to flooding in Sumatra,” she said. Vehicle imports rose 12.89 percent year-on-year in January-November, driven by $4.37 billion worth of shipments from China, as battery electric vehicle wholesales peaked ahead of the Dec. 31, 2025, incentive deadline.

January 5, 2026, The Jakarta Post

(https://www.thejakartapost.com/business/2026/01/05/ri-surplus-holds-despite-weaker-coal-exports-rising-imports.html)

Indonesia and Russia are accelerating industrial cooperation, moving toward more strategic and substantive partnerships, Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita said during a bilateral meeting and the Indonesia-Russia Business Matching event in Moscow in early December 2025.

The two countries are finalizing two key memorandums of understanding (MoUs): one on cooperation in shipbuilding and another on scientific research on the safe use of chrysotile asbestos. The asbestos research MoU was signed on December 8, 2025, by Agus and Russian Minister of Industry and Trade Anton Alikhanov. Agus said the shipbuilding MoU is expected to be finalized soon, providing a framework for collaboration among large industries and SMEs.

Bilateral relations have strengthened following meetings between Indonesian President Prabowo Subianto and Russian President Vladimir Putin, opening avenues for broader strategic cooperation. Agus highlighted that economic relations have grown significantly, with bilateral non-oil and gas trade reaching US$3.9 billion in 2024 up 18.7% since 2020 and rising to US$4.04 billion by October 2025. Russian investment in Indonesia also showed steady growth, totaling US$262.7 million in 2024 and US$147.2 million by September 2025.

“These figures demonstrate the confidence of Russian industry players in Indonesia’s economic stability and industrial potential,” Agus said, noting that ongoing dialogue to resolve technical and logistical challenges is crucial for smooth trade relations.

The 6th Working Group on Trade, Investment, and Industry, held in March 2025 as part of the Indonesia-Russia Joint Commission, produced technical agreements on industrial development, halal supply chains, trade, logistics, certification, agriculture, and financial cooperation. Agus also stressed Indonesia’s support for the Indonesia-Eurasian Economic Union Free Trade Agreement (IEAEU FTA), which is expected to expand market access and reduce trade barriers.

In multilateral cooperation, Indonesia is engaging with the BRICS Center for Industrial Competences (BCIC) to advance industrial digitalization, new mobility, unmanned transport, SME empowerment, artificial intelligence, and bioindustry development. Agus described the BCIC as a strategic platform for technology transfer and modernization toward a smart, green, and inclusive industry.

The Indonesia-Russia Business Matching in Moscow included 19 participants from nine Indonesian companies and 51 Russian industry representatives. The event produced two MoUs: one between Indonesia’s Industrial Estates Association (HKI) and Russian institutions to facilitate investment, roadshows, and trade missions; the other with Russia’s Association of Industrial Parks (AIP) to enhance industrial park competitiveness through information exchange and coordinated visits.

Agus said the initiatives show Indonesia-Russia cooperation is producing tangible results at both policy and business levels. He also highlighted Indonesia’s upcoming role as Partner Country at INNOPROM 2026, Russia’s largest industrial exhibition, calling it a strategic opportunity to showcase the nation’s manufacturing strength and foster new collaborations.

December 13, 2025, CNBC Indonesia(https://www.cnbcindonesia.com/news/20251211172554-4-693452/fantastis-nilai-ekspor-perikanan-ri-sentuh-us-507-miliar-naik-51)

Indonesia’s fisheries exports recorded solid growth in the first 10 months of 2025, despite challenges in key markets, according to data from Statistics Indonesia (BPS). Export earnings from fisheries commodities reached US$5.07 billion between January and October, up 5.1% from US$4.82 billion in the same period last year, Acting Director General for Strengthening the Competitiveness of Marine and Fisheries Products (PDSPKP) Machmud said on Thursday.

“There was an increase from US$4.82 billion to US$5.07 billion, representing year-on-year growth of around 5.1%. This is a fairly significant improvement,” Machmud told a press conference at the Ministry of Marine Affairs and Fisheries’ media center in Jakarta.

He said overall export performance remained strong despite disruptions to shrimp exports to the United States. Shipments to the US still grew 2.6% year-on-year to US$1.6 billion, making it Indonesia’s largest export destination for fisheries products. Exports to China, however, declined 2.4% to US$962 million, mainly due to falling dried seaweed prices. Machmud explained that seaweed prices had normalized after surging last year.

“Previously, seaweed prices were very high, reaching IDR 25,000 to IDR 30,000 per kilogram. Now they have returned to IDR 15,000 to IDR 20,000, which explains the slight decline in exports to China,” he said.

In contrast, exports to ASEAN countries rose sharply by 22.7% to US$811 million, while shipments to Japan increased 2.3% to US$506 million. By commodity, shrimp remained Indonesia’s top fisheries export, generating US$1.4 billion, an 8.6% increase year-on-year. Exports of tuna and skipjack tuna rose 2.6%, while squid and octopus exports climbed 1.9%. Meanwhile, exports of swimming crab and crab declined 2.5%, affected by weaker prices and stiff competition from Alaskan crab.

Despite the decline in some products, Indonesia’s fisheries sector continued to post a large trade surplus of US$4.53 billion. Imports totaled only around US$500 million and were dominated by non-local species such as salmon, trout and cod. Machmud also highlighted investment performance in the marine and fisheries sector, which reached IDR 7.82 trillion in the third quarter of 2025. Processing and aquaculture attracted the largest share, with processing accounting for 32% of total investment.

Singapore emerged as the largest investor with IDR 510 billion, followed by China at IDR 410 billion and South Korea at IDR 400 billion. However, total investment realization has reached only 59.67% of the government’s full-year target of IDR 13.11 trillion. With one quarter remaining, Machmud projected total investment could reach IDR 10 trillion to IDR 11 trillion by year-end as the government continues efforts to attract both foreign and domestic investors.

December 11, 2025, CNBC Indonesia

(https://www.cnbcindonesia.com/news/20251211172554-4-693452/fantastis-nilai-ekspor-perikanan-ri-sentuh-us-507-miliar-naik-51)

Russian President Vladimir Putin said on Wednesday that Moscow welcomed the development of military ties with Indonesia and was ready to assist Jakarta in nuclear energy, as he hosted Indonesian President Prabowo Subianto for talks at the Kremlin. Putin said the meeting would also address a slight decline in Russian wheat exports to Indonesia this year. It marked the second meeting between the two leaders in Russia in 2025, underscoring Moscow’s efforts to deepen ties with the Global South as it faces Western sanctions over the war in Ukraine. In televised remarks, Prabowo described bilateral relations as “excellent” and invited Putin to visit Indonesia in 2026 or 2027, following the Russian leader’s trip to India last week.

“If you consider it possible to engage our specialists, we are always at your disposal,” Putin said, referring to Russia’s experience in building nuclear power plants abroad. Indonesia has said it aims to construct its first nuclear power plant by 2032, with a planned capacity of 500 megawatts.

Putin also noted that Indonesia holds a small trade surplus with Russia in agricultural products and said Moscow was open to expanding cooperation. “The supply of wheat to your market has decreased slightly. This will also be a subject of our discussion today,” he said.

Russia, the world’s largest wheat exporter, resumed shipments to Indonesia in October after a pause that began in January due to negotiations over market access. Russia’s agricultural safety watchdog said Indonesia’s Quarantine Agency agreed in August to extend safety certificates for Russian grain, enabling a shipment of 52,000 metric tons of wheat in October.

Russia’s agricultural export agency Agroexport estimated total grain exports to Indonesia at around 1.3 million tons in 2024, mostly wheat. Before the new agreement, Russia had shipped only 123,000 tons of grain to Indonesia earlier this year, all in January. Moscow is seeking to diversify wheat exports toward Asia, though it faces growing competition from the United States, whose shipments are expected to rise following new trade agreements with Asian countries.

On security cooperation, Putin said military ties between Russia and Indonesia were “developing” and characterized by professional cooperation. “Indonesian specialists are constantly training at our universities, including military academies,” he said.

The two countries conducted their first joint naval exercises in the Java Sea in November 2024. Prabowo has maintained Indonesia’s long-standing non-aligned foreign policy, pledging to engage with all countries while avoiding formal military alliances. Russia has praised what it describes as Indonesia’s balanced position on the war in Ukraine.

December 11, 2025, The Jakarta Post

(https://www.thejakartapost.com/world/2025/12/11/putin-meets-prabowo-to-discuss-military-and-energy-ties-wheat-exports.html)

Indonesia’s ambition to move up the global chocolate value chain continues to face persistent challenges across the cacao supply chain, from low farm productivity and inconsistent bean quality to weak branding and export competitiveness. Industry players say problems begin upstream. I Kadek Surya Prasetya Wiguna, CEO of Bali-based chocolate producer Cau Chocolates, said plant diseases and high capital costs for seeds and fertilizer continue to suppress yields.

“At the intermediary level, many processing factories still accept unfermented cacao beans,” Kadek told reporters at a media briefing in Bali on Nov. 25, noting that the practice violates a Ministry of Agriculture regulation requiring factories to process only fermented beans.

Cacao beans typically require six to 10 days of fermentation to prevent mold and pathogens, followed by five to 10 days of drying to stabilize flavor, before being roasted and processed into intermediate products such as cocoa butter and powder. Indonesian Cacao Council (Dekaindo) chairman Soetanto Abdoellah said farmers often skip fermentation because it takes time and offers little financial incentive. More importantly, a market still exists for unfermented beans, as some producers blend fermented and unfermented beans in a 60:40 ratio to cut costs without significantly affecting taste.

“As long as farmers produce unfermented beans, Indonesia will continue to be seen as a low-quality producer,” Kadek said, adding that Indonesia is the only major cacao-producing country that tolerates the practice.

Indonesia was the world’s third-largest cacao bean producer between 2005 and 2015 but slipped to seventh place by 2019, though it remains Asia’s largest producer. The country has 1.3 million hectares of cacao plantations, almost entirely managed by smallholders. In 2024, most of the roughly 200,000 tonnes of beans produced were absorbed by domestic processors, with only about 13,000 tonnes exported, according to Statistics Indonesia (BPS).

An export duty imposed since 2010 has encouraged domestic processing. Indonesia became a net exporter of cacao products in 2024 due to strong shipments of cocoa paste, butter and powder. However, the country still recorded a trade deficit in finished chocolate, exporting around 25,000 tonnes while importing 24,000 tonnes, resulting in net imports worth $51 million. Despite its production base, Indonesia imported 157,000 tonnes of cacao beans last year to meet domestic demand.

Adi Sucipto of the Plantation Fund Management Agency (BPDP) said 10 of Indonesia’s 31 chocolate factories had closed because import costs exceeded profits. Global cacao prices surged throughout 2024 and early 2025 following harvest failures in West Africa, worsening supply pressures. Low productivity remains a core issue. Many plantations yield only about 600 kilograms per hectare annually, far below the ideal 2 tonnes, Kadek said. Finance Ministry official Nurlaidi added that two-thirds of Indonesia’s cacao trees are too old to be productive, while Bali official Dewa Ayu Nyoman Budiasih noted that the farmer population is also aging. Farmers struggle with thin margins and limited access to processors. Cau Chocolates offers a minimum price of IDR 100,000 ($5.99) per kilogram for fermented beans, shielding farmers from price swings. The company exports about 10 percent of its output, mainly to Poland and Australia.

On the downstream end, the industry faces consumer preference gaps and branding challenges. Indonesians tend to favor sweeter chocolate, while domestic producers focus on darker varieties, contributing to high imports. Kadek said reshaping perceptions is crucial. “We grow the cacao, yet the best-known chocolate comes from elsewhere,” he said.

December 6, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/12/06/why-cacao-rich-indonesia-is-not-yet-a-global-chocolate-producer.html)

Chinese tech giant Huawei Cloud has announced plans to expand its data centers in Indonesia next year, as the company seeks to bolster its artificial intelligence and cloud computing services in the country. At the Huawei Cloud Indonesia Summit 2025 on Tuesday, the company said it would roll out its fourth data center availability zone (AZ) in the Jakarta region in 2026, expanding beyond the three AZs it currently operates.  Speaking at the summit, Communications and Digital Deputy Minister Nezar Patria welcomed Huawei’s infrastructure upgrade, stressing that AI and cloud services were “twin engines of modern economic growth.”

“We stand at a pivotal moment where the confluence of artificial intelligence and cloud computing is reshaping global economies, and Indonesia must not only participate, but lead in this transformation,” he said.

Citing an Asian Development Bank report published this year, Nezar noted that total regional spending on cloud computing reached approximately US$203 billion in 2024, while investment in AI totaled $73 billion.

“This investment has not only expanded, but it has also become a direct catalyst for economic growth. Our analysis shows that a 1 percent increase in AI spending yields a 0.03 percent increase in gross domestic product, while a 1 percent increase in cloud spending results in a 0.01 percent GDP increase,” he added.

Leon Fang, CEO of Huawei Cloud Indonesia, said that Indonesia had seen surging data-processing demand, as reflected by the utilization rate of the current three AZs in Jakarta, which has reached 90.99 percent. He expressed optimism that the planned data center expansion would further drive innovation in the digital transformation of individuals, enterprises and government institutions in Indonesia. Xin Dajiang, chairman of the Board of Directors of Huawei Indonesia, added that the company’s contributions had continued to grow since the launch of its data center infrastructure.

“We’ve been honored to partner with industry leaders and support hundreds of small and medium enterprises [SMEs]. Together, these efforts have created tens of thousands of jobs and nurtured a new generation of digital talent,” he said. In addition to the data center expansion, Huawei also announced two major partnerships: a full-stack AI collaboration with state-owned mobile operator Telkomsel and a joint content delivery network (CDN) service with parent company Telkom to improve local content distribution speeds and user experience.

Indonesia has welcomed multiple major global firms investing in its data center infrastructure. In May, United States-based digital infrastructure company Equinix entered the Indonesian market by launching its first data center in Jakarta, in a joint venture with PT Astra International.

Last year, global tech and communications giant Cisco also established its first security cloud data center in Jakarta, as it sought to tap into the fast-growing demand for security services across the country. The growing appetite for data center investment has been fueled by Indonesia’s accelerating digital economy and surging AI infrastructure demand, with property consultants reporting that real estate investment has shifted toward the booming data center sector. The shift is most visible in Jakarta, as a survey by Turner & Townsend shows that the city offers lower data center construction costs compared with other Asian markets such as Singapore and Tokyo.

December 3, 2025, The Jakarta Post

(https://www.thejakartapost.com/business/2025/12/03/huawei-cloud-to-expand-data-centers-in-indonesia-next-year.html)

The government has secured investment commitments from China for 16 projects valued at a total of IDR 36.4 trillion (US$2.2 billion) under a memorandum of understanding (MoU) linked to the “Two Countries, Two Parks” initiative. Coordinating Economy Minister Airlangga Hartarto announced on Thursday that the agreement was finalized during a meeting with a Chinese Communist Party representative from the city of Fuzhou on Wednesday.

“During the meeting, an MoU was issued for 16 projects. These 16 projects are related to the Two Countries, Two Parks program. The total investment for the 16 projects is IDR 36.4 trillion,” Airlangga said at the State Palace in Jakarta, as reported by Kumparan. The project portfolio spans heavy industries, agriculture, and trade. Key initiatives include establishing a 1-million-tonne steel plant, a food processing facility for meat and marine products, and a specialized textile research and development center. The projects also venture into coal, nickel-iron (Fe-Ni) trade, textile raw materials, and plantations.

The partnership is expected to further develop the agricultural sector, according to Airlangga, involving collaborative ventures in the tea industry, as well as the direct sourcing of key agricultural products, such as coconuts and durians. A significant portion of this new investment is slated for the Batang Industrial Special Economic Zone in Central Java. The minister hailed the influx of capital as a driver of regional development, saying it was “one way to accelerate investment in the Batang Industrial Zone.”

The Two Countries, Two Parks program was established as a key outcome of a meeting between Chinese President Xi Jinping and Indonesian President Prabowo Subianto in Beijing last November. The initiative focuses on investment in three locations: the Batang Industrial Estate, the Wijayakusuma Industrial Estate in Semarang, also in Central Java, and the Bintan Industrial Estate in the Riau Islands province.

Chinese companies have been pivoting toward Indonesia not only for its export potential but also to tap into the vast domestic market. Gao Xiaoyu, the founder of an industrial land consulting firm in Jakarta, has been inundated with calls from Chinese companies eager to expand or set up operations in Indonesia as they try to shield themselves from hefty United States import tariffs, according to a Reuters report published on Aug. 14.

US duties on goods shipped from China currently exceed 30 percent. The US tariff rate for most goods from Indonesia is lower, at 19 percent, which is the same as imports from Malaysia, the Philippines, and Thailand, and just below Vietnam’s 20 percent. But Indonesia, as Southeast Asia’s biggest economy and the world’s fourth-most populous country, has an edge over its neighbors, namely the potential of its vast consumer market. Vietnam and Thailand were among the major beneficiaries of the first wave of Chinese companies’ overseas diversification, but amid the latest trade turmoil with the US, other neighbors are also benefiting.

November 28, 2025, The Jakarta Post(https://www.thejakartapost.com/business/2025/11/28/ri-china-ink-2-2-billion-in-deals-for-16-investment-projects-airlangga.html)