Chinese Investors Continue to Eye Indonesia, with Smelters and Green Energy as Key Draws
JAKARTA — Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu has revealed that Chinese investors continue to show strong interest in investing in Indonesia. Both Hong Kong and China have ranked among the top five countries by realised investment in the country over at least the past five years.
"Their number one interest is in smelters, particularly nickel. We can say that 80% to 90% of the players come from China," he said following the Tri Hita Kirana: Inaugural Global Business Summit on Belt and Road Infrastructure event at the BKPM office on Sunday (25/5/2025).
Todotua added that Chinese investors are also keen on manufacturing investment, particularly in footwear and garments. Additionally, Chinese investors have been active in the energy sector, as China has already adopted green energy on a massive scale, including wind, wave, and solar panel development.
"Our potential is enormous. We have the potential for 3,700 gigawatts when it comes to green energy, but we need technology partners as well as investment partners," he said.
According to BKPM data, last year and in Q1 2025, Hong Kong displaced mainland China as the second-largest foreign investor in Indonesia. Last year, Hong Kong invested US$8.2 billion, accounting for 13.6% of total foreign direct investment, whilst China recorded US$8.1 billion.
In Q1 2025, Hong Kong invested US$2.2 billion, or 15.5% of total incoming foreign investment, of which 99.1% went into mineral downstreaming. During the same period, China invested US$1.8 billion, with 76.6% — equivalent to US$1 billion — directed towards mineral downstreaming.
At the business meeting held as part of the Belt and Road Initiative — a trade route initiative connecting Asia with other regions — a number of Chinese companies expressed interest in investing in Indonesia. These included XiamenAir, recycling firm GEM Co. Ltd., Yingke Law Firm, Vivo Technology Co. Ltd., Huayou Cobalt, and JA Solar Holdings Co. Ltd.
As an example, GEM Co. Ltd. continues to increase its investment in Indonesia. The Chinese recycling company plans to build an International Green Industrial Park (IGIP) in Morowali, Central Sulawesi, with an estimated value of US$8 billion or Rp129.74 trillion (at an exchange rate of Rp16,217 per US dollar).
GEM founder Xu Kaihua said that whilst a number of nickel players are building battery industries for electric vehicles (EVs), his company is focused on building the IGIP oriented towards zero-emission battery recycling.
"The initial phase of IGIP construction is US$2 billion. The total estimate is US$8 billion," he told reporters following a visit to ITB on Saturday (24/5/2025).
Beyond simply building business operations in Indonesia, GEM is also investing in human resource development through the construction of a China-Indonesia Joint Laboratory at the Bandung Institute of Technology (ITB).
"Their number one interest is in smelters, particularly nickel. We can say that 80% to 90% of the players come from China," he said following the Tri Hita Kirana: Inaugural Global Business Summit on Belt and Road Infrastructure event at the BKPM office on Sunday (25/5/2025).
Todotua added that Chinese investors are also keen on manufacturing investment, particularly in footwear and garments. Additionally, Chinese investors have been active in the energy sector, as China has already adopted green energy on a massive scale, including wind, wave, and solar panel development.
"Our potential is enormous. We have the potential for 3,700 gigawatts when it comes to green energy, but we need technology partners as well as investment partners," he said.
According to BKPM data, last year and in Q1 2025, Hong Kong displaced mainland China as the second-largest foreign investor in Indonesia. Last year, Hong Kong invested US$8.2 billion, accounting for 13.6% of total foreign direct investment, whilst China recorded US$8.1 billion.
In Q1 2025, Hong Kong invested US$2.2 billion, or 15.5% of total incoming foreign investment, of which 99.1% went into mineral downstreaming. During the same period, China invested US$1.8 billion, with 76.6% — equivalent to US$1 billion — directed towards mineral downstreaming.
At the business meeting held as part of the Belt and Road Initiative — a trade route initiative connecting Asia with other regions — a number of Chinese companies expressed interest in investing in Indonesia. These included XiamenAir, recycling firm GEM Co. Ltd., Yingke Law Firm, Vivo Technology Co. Ltd., Huayou Cobalt, and JA Solar Holdings Co. Ltd.
As an example, GEM Co. Ltd. continues to increase its investment in Indonesia. The Chinese recycling company plans to build an International Green Industrial Park (IGIP) in Morowali, Central Sulawesi, with an estimated value of US$8 billion or Rp129.74 trillion (at an exchange rate of Rp16,217 per US dollar).
GEM founder Xu Kaihua said that whilst a number of nickel players are building battery industries for electric vehicles (EVs), his company is focused on building the IGIP oriented towards zero-emission battery recycling.
"The initial phase of IGIP construction is US$2 billion. The total estimate is US$8 billion," he told reporters following a visit to ITB on Saturday (24/5/2025).
Beyond simply building business operations in Indonesia, GEM is also investing in human resource development through the construction of a China-Indonesia Joint Laboratory at the Bandung Institute of Technology (ITB).