Chinese Automotive Invasion: Technology Transfer as Key to Indonesia's Development

JAKARTA - The influx of automotive brands from China in Indonesia has become increasingly massive in recent years. Names such as BYD, Jaecoo, Chery, Geely, and Aion are now aggressively expanding their dealership networks, introducing new models, and building production facilities domestically. Amid this rapid expansion, Heiwai Tang, an international economist and Associate Vice President (Global) at The University of Hong Kong, assesses that the presence of Chinese automotive brands can provide positive impacts for national industrial development in the long term, as long as it is accompanied by appropriate government policies. According to Tang, industrial policies need to maintain a balance between protecting local industries and market openness to keep the business climate competitive. “If policies are too protectionist, in the long term, this can create a sheltered market for local companies. But ultimately, such conditions are not good for productivity and economic growth,” Tang stated when met in South Jakarta on Wednesday (13/5/2026). Tang explained that various studies show sustainable economic development is more effectively achieved through markets open to foreign investment and global competition. “The most sustainable way for long-term economic development is to maintain an open market, so that the best companies from abroad are willing to come and bring technology transfer and knowledge to the local economy,” Tang said. According to him, this technology transfer is crucial for local industries to develop and enhance their competitiveness in the future. In addition, the presence of global automotive companies is also seen as capable of creating higher-quality jobs for Indonesian society. Therefore, he believes industrialisation strategies need to be directed towards boosting national productivity while opening up broader employment opportunities in the long term.