Chinese companies are ramping up investment in Indonesia to avoid steep U.S. import tariffs and tap into Southeast Asia’s largest consumer market.
Dozens of Chinese manufacturers are relocating or expanding operations in Indonesia, driven by U.S. tariffs exceeding 30% on goods from China compared with 19% for Indonesian exports.
Industrial park operators and consultants in West Java say demand from Chinese clients has surged since the U.S. and Indonesia finalised a bilateral trade deal in July. “Coincidentally, all of them were from China,” said Abednego Purnomo of Subang Smartpolitan, a 2,700-hectare industrial estate.
Investment from China and Hong Kong rose 6.5% year-on-year to $8.2 billion in the first half of 2025, according to Indonesia’s investment ministry. Foreign direct investment overall climbed 2.58% to 432.6 trillion rupiah (about $26.56 billion), with officials forecasting further growth this year.
“Most Chinese firms are looking for immediate opportunities... it’s like a crash programme,” said Rivan Munansa of Colliers International.
Chinese manufacturers, ranging from toy and textile producers to electric vehicle firms, are also attracted by Indonesia’s vast population of more than 270 million. Household spending makes up more than half of GDP, which grew 5.12% in the second quarter—its fastest pace in two years.
Land and rental prices have surged as a result. Gao Xiaoyu, who runs a land consultancy in Jakarta, said industrial real estate prices rose by up to 25% year-on-year—the sharpest increase in two decades.
President Prabowo Subianto has reinforced ties with Beijing, meeting Chinese President Xi Jinping in November and hosting Premier Li Qiang in Jakarta in May.
With Chinese exporters seeking alternatives to maintain profit margins, many see Indonesia as a long-term strategic base.
“In Indonesia, it’s relatively easy to achieve net profit margins of 20% to 30%,” said Zhang Chao, a motorcycle parts maker who recently leased new office space in Jakarta.
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Australia booked its place in the FIFA World Cup 2026 Round of 32 after a tense goalless draw with Paraguay. Already-eliminated Türkiye ended its campaign on a high with a dramatic 3-2 win over group winners the United States.
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The United States has seized nearly 400 internet domains accused of illegally streaming World Cup matches, in what officials described as a major effort to disrupt international piracy networks profiting from the tournament’s global popularity.
As Western Europe battles a deadly heatwave that has shattered temperature records, disrupted transport and power supplies, and forced the closure of schools and cultural landmarks, attention is turning to whether El Niño is playing a role in the extreme conditions.
The U.S. Senate rejected a resolution on Wednesday that would have directed President Donald Trump to remove U.S. forces from hostilities against Iran unless Congress formally authorised military action.
The Kremlin has denied a Wall Street Journal report claiming Moscow is pressuring Belarus to support an expanded Russian military campaign in Ukraine.
Tens of thousands of people are still unaccounted for after two powerful earthquakes struck Venezuela. At least 589 people have been confirmed dead and hundreds are believed to be trapped under rubble, as emergency crews and international rescue teams race to respond.
ANEWZ can exclusively report that European Commission President Ursula von der Leyen is expected to visit Azerbaijan on 1 July.
Protesters gathered in Beirut’s southern suburbs after Lebanon and Israel signed a framework agreement in Washington aimed at ending fighting between Israel and Iran-backed Hezbollah.
The UN's International Maritime Organization has paused escort operations through the Strait of Hormuz after a cargo ship was reportedly attacked near Oman, with two U.S. officials accusing Iran of the attack.
Kazakhstan has not received an official request from Russia for petrol supplies, Energy Minister Yerlan Akkenzhenov said, as fuel shortages and sales restrictions in Russia raise concerns over fuel supplies across Central Asia.
Iran's Ministry of Foreign Affairs on Friday (26 June) condemned as "interventionist, irresponsible and provocative" a statement issued following a joint meeting of foreign ministers from the U.S. and the Gulf Cooperation Council (GCC) in Manama, Bahrain.
Azerbaijan Airlines (AZAL) has taken delivery of its first Airbus A321neo, marking another milestone in the carrier's long-term fleet modernisation programme aimed at improving efficiency, expanding capacity and enhancing the passenger experience.
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