China's BYD is set to complete a $1 billion EV factory in Indonesia by year-end, triggering contentious debate between economic opportunity and concerns about resource exploitation and Chinese economic dominance. Critics warn of nickel overexploitation, displacement of local manufacturers, labour concerns, and profit repatriation, whilst the Indonesian government emphasises job creation and technology transfer benefits.

Indonesia has set an ambitious GDP growth target of 5.2% for 2025, supported by household consumption and digital transformation initiatives like QRIS payment systems. The government has cancelled a planned VAT increase to boost consumer spending whilst pursuing market diversification to counter risks from U.S. dollar strength and trade uncertainties, particularly with China and the United States representing 40% of exports.