Caixin Weekly | Indonesia at a Crossroads in Economic Transformation (AI Translation)
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This article was translated from Chinese using AI. The translation may contain inaccuracies. Click the button on the right to hide or reveal the original version.
2025年5月底，印度尼西亚万隆，拥堵的晚高峰交通。印度尼西亚不仅是地理意义上的十字路口，也正处在经济发展、能源转型的关键节点。图：赵煊
文｜财新周刊 赵煊 发自印尼雅加达
By Zhao Xuan, Caixin Weekly, reporting from Jakarta, Indonesia
文｜财新周刊 赵煊 发自印尼雅加达
By Zhao Xuan, Caixin Weekly, reporting from Jakarta, Indonesia
5月末的印度尼西亚最大城市雅加达炎热湿润、偶有阵雨，正从雨季过渡到旱季。
At the end of May, Indonesia's largest city, Jakarta, was hot and humid with occasional showers, transitioning from the rainy season to the dry season.
2025年5月24日下午，中国国务院总理李强抵达雅加达，开启对印尼为期三天的正式访问。同作为G20（二十国集团）和金砖国家成员，“中—印尼”双边关系近年来日益紧密。2024年，双边贸易额已达1478亿美元，同比增长6.1%。中国连续12年成为印尼最大贸易伙伴。
On the afternoon of May 24, 2025, Chinese Premier Li Qiang arrived in Jakarta, commencing a three-day official visit to Indonesia. As fellow members of the G20 and BRICS, bilateral relations between China and Indonesia have grown increasingly close in recent years. In 2024, bilateral trade reached $147.8 billion, marking a year-on-year increase of 6.1%. China has remained Indonesia’s largest trading partner for 12 consecutive years.
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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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Caixin Weekly | Indonesia at a Crossroads in Economic Transformation (AI Translation)
Explore the story in 30 seconds
- China-Indonesia economic ties are deepening, with bilateral trade reaching $147.8 billion in 2024 (up 6.1% YoY) and China being Indonesia’s top trading partner for 12 consecutive years.
- Indonesia aims for rapid industrialization and a transition to green energy (net zero by 2060), but remains heavily reliant on coal, with renewables only 14.1% of the energy mix in 2024.
- Chinese investment is central in Indonesia's nickel, battery, and EV sectors, but challenges remain in energy transition, talent shortage, infrastructure, and green compliance for exports.
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Explore the story in 3 minutes
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Who’s Who
- Huayou Cobalt
- Huayou Cobalt, founded in 2002 by Chen Xuehua, specializes in developing and manufacturing cobalt, nickel, and lithium materials for new energy. Since 2018, it has significantly expanded its upstream nickel resource projects in Indonesia, integrating operations across the entire supply chain. Huayou's investments in Indonesia have reached billions, including the large-scale Pomalaa Industrial Park, aiming to establish an integrated lithium battery closed-loop supply chain.
- GEM
- GEM (格林美) is an early Chinese investor in Indonesia's nickel industry, primarily focused on power battery recycling. They are expanding their investment in Indonesia to build an International Green Industrial Park (IGIP), estimated to cost $8 billion, with zero-carbon design. This park aims to create a core supply chain for secondary battery materials from nickel resources.
- CATL
- Contemporary Amperex Technology Co. Limited (CATL) is a Chinese battery manufacturer. CATL is investing in Indonesia's nickel industry, a key material for electric vehicle batteries. Indonesia aims to become a major player in the global electric vehicle and battery industries, with plans for 140 GWh battery capacity and 600,000 electric vehicle production by 2030, supported by foreign investment from companies like CATL.
- Tsingshan Holding Group
- Tsingshan Holding Group is a Chinese company that plays a significant role in Indonesia's nickel industry. Notably, through its "park + resource" model, it spearheaded the development of the Morowali and Weda Bay industrial parks, attracting key players like GEM Co. and Huayou Cobalt. These efforts have been instrumental in establishing a robust industrial cluster in Indonesia, spanning from nickel to stainless steel and battery materials.
- BYD
- BYD and GAC Aion, received tax incentives from the Indonesian government in December 2024 to encourage local factory construction. This is part of Indonesia's strategy to become a hub for new energy manufacturing, aiming for 600,000 electric vehicle production capacity by 2030.
- GAC Aion
- GAC Aion (广汽埃安) is a Chinese new energy vehicle (NEV) manufacturer. The Indonesian Industrial Minister Agus publicly stated in December 2024 that the government would provide tax incentives to Chinese NEV manufacturers, including GAC Aion, to encourage them to establish local factories in Indonesia.
- Zijin Mining Group
- Zijin Mining Group, a Chinese company, is actively exploring opportunities in Indonesia's nickel laterite and copper resources. They are seeking suitable partners to potentially enter this sector. The company's interest aligns with the broader trend of Chinese enterprises expanding their investments in Indonesia, particularly in the mining and new energy materials sectors.
- China Gezhouba Group Co., Ltd. (CGGC)
- China Gezhouba Group Co., Ltd. (CGGC) is a Chinese state-owned enterprise in Indonesia's green energy sector. In March 2025, CGGC won the bid for the 60MW Saguling Floating Photovoltaic Project in Indonesia, playing a role in the country's transition to renewable energy.
- China Energy Investment Corporation (CEIC)
- China Energy Investment Corporation (CEIC) has invested in Indonesia's renewable energy sector. Its subsidiary, Guodian Power, won a bid to construct the 100MW Karangkates floating photovoltaic power station, marking CEIC's first overseas photovoltaic investment project. This aligns with China's push for green economic transformation in its outbound investments.
- GD Power Development Co., Ltd.
- GD Power Development Co., Ltd. is a Chinese energy company. The company won a bid for the 100MW Karangkates Floating Photovoltaic Power Plant project in Indonesia in March 2024. This marks GD Power Development's first overseas photovoltaic power station investment project.
- SDIC Power Holdings Co., Ltd.
- SDIC Power Holdings Co., Ltd. is a Chinese company that has invested in the largest and most technically challenging hydropower station project currently under construction in Indonesia. This project, the Batang Toru Hydropower Plant, located in North Sumatra, has a total installed capacity of 510MW, marking SDIC Power's largest overseas investment.
- TotalEnergies
- On May 27, French company TotalEnergies signed a cooperation agreement with Singapore's RGE Group to jointly invest in and develop a "photovoltaic + energy storage" project in Indonesia. This project will be located in Riau Province on the central-eastern part of Sumatra Island.
- RGE (Royal Golden Eagle)
- RGE (Royal Golden Eagle) is Singapore-based and has entered into a partnership agreement with France's Total Energies. They plan to jointly invest in and develop a "photovoltaic + energy storage" project in Riau province, Indonesia. This project aims to export 1GW of power to Singapore.
- Mixue Ice Cream & Tea
- Mixue Ice Cream & Tea is a Chinese chain of affordable ice cream and tea shops. It is expanding internationally, with a noticeable presence in Indonesian cities. Its expansion into Indonesia highlights the broader trend of Chinese consumer brands entering the Southeast Asian market, catering to a large population base.
- CHAGEE
- CHAGEE is a Chinese chain consumer brand that has become quite common in major Indonesian cities. This presence highlights the growing trend of Chinese companies, particularly consumer brands, expanding their reach into the Indonesian market.
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What Happened When
- October 2023：
- Jakarta-Bandung High-Speed Railway was completed and opened to traffic.
- February 2024：
- Prabowo Subianto won Indonesia’s presidential election.
- March 2024：
- Guodian Power (China Energy Investment Corporation subsidiary) secured bid for the 100MW Karangkades floating PV power plant project in Indonesia.
- By 2024：
- China has been Indonesia’s largest trading partner for 12 consecutive years.
- 2024：
- Indonesia’s bilateral trade with China reached $147.8 billion; Indonesia achieved a trade surplus of $16.8 billion with the U.S.; total trade with U.S. reached $35.8 billion; China was Indonesia's second-largest source of FDI with $8.1 billion invested.
- In 2024：
- Renewable energy accounted for 14.1% of Indonesia’s power supply (as of 2024, vs. target of 23% by 2025).
- By October 2024：
- Prabowo Subianto to take office as Indonesian President.
- November 2024：
- G20 summit in Brazil, where Indonesia’s new president announced aiming to phase out coal-fired power plants by 2040 and potentially moving net zero target to 2050.
- November 2024：
- Construction began on the Huayou Indonesia Pomalaa Industrial Park (IPIP).
- December 2024：
- Indonesia’s Minister of Industry announced tax incentives for Chinese EV makers (including BYD and GAC Aion) to encourage local factory establishment.
- By 2025：
- Indonesia had pledged to raise renewable energy share to 23%; actual stood at 14.1% in 2024.
- February 2025：
- BCG released report noting Indonesia is prioritizing economic growth and national competitiveness in wake of electoral transition.
- March 2025：
- China Energy Engineering Group Gezhouba Group won bid for Sagu Ning 60MW floating PV project in Indonesia.
- March 24, 2025：
- Batang Hydropower Station dam in North Sumatra was fully capped.
- April 2025：
- Global Energy Monitor reported Indonesia was third globally in newly installed coal-fired power capacity in 2024 (1.9 GW).
- May 24, 2025：
- Chinese Premier Li Qiang arrived in Jakarta, commencing a three-day official visit to Indonesia and attended a China-Indonesia business dinner.
- May 25, 2025：
- First Global Enterprises Jointly Building a High-Quality ‘Belt and Road’ Summit held; Eniya Listiani Dewi spoke about Indonesia’s renewable energy targets. Luhut met in Jakarta with executives from nine major Chinese corporations.
- May 25, 2025：
- Indonesia’s Deputy Minister for Investment and Downstream Industry discussed ‘Golden Indonesia 2045’ initiative at the ministry’s Grand Hall in Jakarta.
- May 26, 2025：
- Luhut Binsar Pandjaitan commented on China-Indonesia economic cooperation after Bali Turtle Island Special Economic Zone promotional event.
- May 26, 2025：
- Indonesia released its ‘2025–2034 Electricity Supply Business Plan’ (RUPTL).
- Late May 2025：
- Danantara Indonesia (sovereign wealth fund) signed MoU with China Investment Corporation to explore investments.
- May 27, 2025：
- French President Emmanuel Macron arrived in Jakarta for official visit; French and Indonesian companies signed multiple energy and minerals agreements.
- June 13, 2025：
- Indonesia and Singapore signed energy cooperation agreements, including cross-border renewable energy project to transmit green electricity to Singapore.
- June 13, 2025：
- Leonardo Sambodo announced Indonesia’s plan to slash GHG emissions in nickel sector by 81% by 2045.
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