Chinese Enterprise's 1.25 Trillion IDR New Capital Comprehensive Project Officially Starts Construction
rnrnThe construction of Indonesia's new capital Nusantara (IKN) recently reached an important investment milestone. Chinese foreign-funded enterprise PT Star Bright International Investment officially commenced construction of a local integrated park project, marking the first foreign-funded self-built construction project in the new capital, with a total investment of up to 1.25 trillion IDR. The project is expected to be fully completed by the end of 2026, injecting strong foreign investment momentum into the new capital's development. The project is located in the prime area of Zone 1B, the government core area of the new capital, covering 15,501 square meters, holding extremely high strategic value. The new capital
Two Major Indonesian Bird’s Nest Leaders Face Divergent Situations in China Export
Indonesia's Top Agricultural Company Divests Inefficient Palm Oil Assets
Indonesian Commercial Real Estate Sees Long-Term Incremental Demand from Chinese Enterprises
Indonesia Plans to Fill Nickel Ore Gap with Imports from Philippines
China-Indonesia Aluminum Capacity Surge Leads to Market Oversupply in 2027
Goldman Sachs commodities research report indicates that due to the shutdown of Middle East aluminum plants, short-term aluminum prices will remain high, but with significant expansion of new supply from Indonesia and China, the global aluminum market will return to oversupply in 2027, and the bank is bearish on aluminum prices in the medium to long term. The report revises expectations for Middle East capacity recovery, with local smelter restart progress slower than previously estimated. Even if the Strait of Hormuz resumes navigation under a temporary agreement, damaged electrolytic cells still need repair, and capacity can only be restarted in stages. Goldman Sachs cuts Middle East aluminum production by 660,000 tons in 2026 and 1 million tons in 2027; it predicts Bahrain's capacity will recover to pre-conflict levels by mid-2027, and the UAE by the end of 2027. Supply contraction results in a global aluminum deficit of 720,000 tons in 2026, compared to a previous forecast of only 570,000 tons; the market will turn to a surplus of 590,000 tons in 2027, versus a previous estimate of 1.3 million tons. The report summarizes the market situation as a dual supply shock: Middle East production cuts tighten supply in the short term and support aluminum prices, but new capacity led by Indonesia and China will gradually offset the gap, determining the medium- to long-term oversupply pattern. Goldman Sachs raises its forecast for Indonesian primary aluminum production to 1.7 million tons in 2026 and 2.9 million tons in 2027, citing accelerated commissioning of the Adaro, Tsingshan Morowali, and Zhuwan Weda Bay projects, with Indonesia's aluminum output already surging 89% year-on-year.
Chinese Lithium Enterprises Intensify Investment in Indonesian Market
Lopal Technology recently issued an announcement on foreign investment. The company's controlled subsidiary, Liyuan Asia Pacific, plans to build the third phase of the new energy battery cathode material project in Batang Comprehensive Industrial Park, Central Java, Indonesia, through its wholly-owned subsidiary, Liyuan Indonesia Batang. The total investment is estimated at US$160 million, equivalent to approximately RMB 1.088 billion, with an annual production capacity of 120,000 tons of second and third generation lithium iron phosphate. Lopal Technology's estimated contribution based on its shareholding ratio is RMB 377 million. The project company's registered capital is 300 billion Indonesian rupiah, equivalent to RMB 112 million, all in cash, with funding sources covering self-owned funds, bank loans, and self-raised funds.
Chinese Auto Brands Face Intense Competition in Indonesian Market
In May 2026, the Indonesian four-wheeled vehicle market weakened, with both wholesale and retail sales declining month-on-month. Manufacturers' wholesale volume to dealers was only 69,219 units, down 14.3% month-on-month; dealers' retail sales to end consumers were 71,890 units, down 5.1% month-on-month, underperforming April. Despite the monthly pressure, the cumulative market for the first five months of the year continued to grow. From January to May, total terminal retail sales reached 359,490 units, up 8.8% year-on-year; cumulative wholesale volume was 359,015 units, up 12.8% year-on-year, indicating a positive overall annual trend.
Indonesia's Mineral and Coal Industry Revenue Distribution Mechanism Unchanged
The Indonesian Mining Association (IMA) applauds the government's decision to abandon the implementation of the oil and gas gross split revenue distribution scheme in the mineral and coal sector, stating that it eliminates major policy uncertainties that disrupt mining investment planning. The IMA executive chairman noted that the operational characteristics of the mineral and coal industry differ significantly from those of the upstream oil and gas sector, and the complexity of developing various types of minerals varies, which is the core reason why most countries set differentiated royalty and fiscal regimes for the two industries. The association expects the government to maintain fiscal policy stability, stabilize corporate financial burdens, and ensure the sustainability of mining investment and production operations. Currently, Indonesia's mining industry faces multiple policy adjustments and operational pressures, including the single window export mechanism, foreign exchange retention from natural resource exports, benchmark mineral price adjustments, export tariffs, and mandatory blending of 50% biodiesel (B50).
Jakarta Fair Officially Opens on June 11
The 2026 Jakarta Fair Kemayoran will be held from June 11 to July 12 at the JIEXPO Kemayoran exhibition hall. The organizer has released a comprehensive travel guide to help citizens plan their trips. Visitors can choose private cars or various public transportation modes to reach the venue, with multiple travel options and rich route choices. In terms of public transportation, Jakarta's rapid bus Transjakarta has opened several direct routes to the exhibition hall, including daytime regular routes and night services. Bus route 14
Three Major Geothermal Projects in Indonesia Secure Nearly $500 Million in Financing
Three geothermal power plant projects under PT Pertamina Geothermal Energy (PGE) have been included in Indonesia's National Development Planning Agency's "2026 Overseas Priority Loan Project List (Green Book 2026)", securing a total of $477.87 million in international financing. The projects are two 55 MW units (Units 3 and 4) at the Lumut Balai geothermal plant and two units (Units 7 and 8) totaling 50 MW at the Lahendong geothermal plant. PGE's president stated that the inclusion recognizes the project preparation efforts and
Q1 Investment Doubles! Batam Island's 2026 Economic Boom
With multiple core indicators surging, Batam Island's economic vitality is fully unleashed, solidifying its position as a logistics, trade, and industrial hub in western Indonesia, with increasingly strong economic growth momentum in 2026. According to Batam Investment Board data, realized investment in the first quarter of 2026 reached IDR 17.4 trillion, soaring 102.85% year-on-year and up 68.92% quarter-on-quarter, indicating unprecedented investment enthusiasm. The logistics sector also performed remarkably. Batu Ampar Container Terminal recorded 106 international direct calls from January to May 2026, a 212% increase from 34 calls in the same period last year.