Most Foreign Companies Investing in Indonesia See Profits
Most Foreign Companies Investing in Indonesia See Profits
Reporter
July 24, 2026 | 04:40 pm
TEMPO.CO, Jakarta - Coordinating Minister for the Economy Airlangga Hartarto claimed that most foreign companies investing in Indonesia have been profitable. He mentioned that a report from the Japan External Trade Organization (JETRO) indicated that about 70 percent of foreign companies in Indonesia have recorded profits.
The statement was made during a Courtesy Business Visit by the Delegation of the People’s Republic of China (PRC) and the Indonesian Ambassador to the PRC in Jakarta on Thursday, July 23. “So more profitable than those that are not profitable,” Airlangga said in a press release on Friday, July 24, 2026.
According to Airlangga, the economic relations between Indonesia and China continue to strengthen, including through the implementation of the ASEAN-China Free Trade Area (ACFTA) which has been in effect since 2010, and the Regional Comprehensive Economic Partnership (RCEP) which became effective in 2022. According to Indonesian data, bilateral trade between the two countries is around US$154 billion. According to Chinese data, the value is around US$160 billion. Indonesia’s main export commodities to China include ferroalloy, nickel matte, lignite, coal, and palm oil.
Airlangga mentioned that China is one of Indonesia’s largest investors, continuously increasing its contribution to various strategic sectors. To encourage investment, the government provides various fiscal incentives, such as tax holidays of up to 100 percent in accordance with the size and criteria of the investment, as well as tax and investment allowances and super tax deductions to support investment, innovation, and human resource development.
The government also encourages expanding cooperation with China in various sectors. In the field of education, collaboration has been established with Tsinghua University through research activities and seminars in the Bali Special Economic Zone (SEZ). In the automotive sector, the government encourages investments from Chinese companies, such as BYD and Chery, which have entered the top five market share of the Indonesian automotive market. Meanwhile, in the digital economy sector, the government encourages investment in the semiconductor industry, the development of fiber optic infrastructure, digital application development, and data centers.
During the meeting, Airlangga also discussed with several Chinese business players. Representatives from Indonesia in various sectors, including textiles, footwear, furniture, education, plastic packaging, industrial estates, electronics, and renewable energy, were present. The Coordinating Ministry for the Economy stated that the government is committed to opening up opportunities and expanding mutually beneficial cooperation with China, not only in the fields of trade and investment, but also in the industrial, education, digital economy, and technology sectors.
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