Five Emerging Opportunities for Chinese Investors in Indonesia

An analysis published by China Briefing in September 2025 (written by Celia Annetta) notes that Indonesia's realized investment reached Rp1,714.2 trillion in 2024, up 20.8% year on year, of which Rp900.2 trillion was foreign direct investment. Mainland China sits alongside Singapore, Hong Kong, Malaysia and Japan as a leading source.

The article identifies five areas to watch. First, nickel and the EV supply chain: Indonesia supplies about 65% of the world's refined nickel, and the opportunity is moving downstream from smelting into precursors, battery materials and recycling. Second, the digital economy and data infrastructure: valued at around USD90 billion in 2024, the digital economy is projected to reach USD200–360 billion by 2030.

Third, healthcare: national health insurance (BPJS) covers roughly 278 million people while health spending is only 3.7% of GDP, leaving considerable room to grow. Fourth, renewable energy: Indonesia plans 42.6 GW of new renewable capacity and 10.3 GW of battery storage. Fifth, infrastructure and smart cities, with the Jakarta–Bandung high-speed railway as the flagship example.

On the policy side, the Positive Investment List has reshaped foreign ownership rules, risk-based licensing is speeding up approvals, and PPP models are increasingly available for hospitals and infrastructure.

The article also cautions investors to watch local content requirements (TKDN), cost changes from the 12% VAT rate, tighter safety and environmental oversight of industrial estates, and ESG and traceability standards. Sound legal and tax structuring before market entry is a precondition for capturing these opportunities.