Indonesian Pesticide Company Factory Officially Begins Operations
PT Delta Giri Wacana Tbk (DGWG) has officially inaugurated its carbamate factory in the Modern Industrial Zone in Cilegon, Banten Province. The factory occupies 4.5 hectares and is the third plant under the DGW Group. The first two are an NPK fertilizer plant in Gresik and an agrochemical formulation and plastic mulch factory at the same location. Construction began in 2023 with an investment of US$20 million. Initial annual capacity is 2,000 metric tons of active ingredients, equivalent to approximately 5,000 metric tons per year of formulated pesticides, with plans to
Tariff Rates on Imports from ASEAN Countries Imposed by the United States
Up to 28 Production Lines Suspended at Multiple Indonesian Nickel Smelters
Chinese Oil and Chemical Giant Invests in Indonesia to Drive Enterprise Development
Chinese Construction Machinery Enterprises Invest in Developing Indonesian Market
West Java Patimban Port Project Progress Reaches 64.72%
As of early July 2025, the construction progress of Package 6 of the Patimban Port in Subang Regency, West Java Province, involving PT Wijaya Karya (WIKA), has reached 64.72%. The work focuses on the construction of the terminal area and the sand filling and land reclamation process. The project is part of the National Strategic Project, aimed at supporting the maritime transportation system and improving the efficiency of domestic and international trade. Sediment curtain frame technology is used in dredging operations to reduce environmental impact while improving time and cost efficiency. The project provides employment opportunities for the local community, with approximately 200 local workers actively participating.
US Tariff Rate on Indonesian Goods Reduced to 19%
The United States has reduced the tariff on Indonesian export products from 32% to 19%, making it one of the countries with lower tariffs in ASEAN. According to a report from the Office of the Chief Economist (OCE) of Bank Mandiri Indonesia dated July 16, 2025, there are differences in export tariffs to the US among ASEAN countries. Laos and Myanmar top the list at 40%, Cambodia and Thailand at 36%, Malaysia 25%, Vietnam and the Philippines 20% each, Indonesia 19%, and Singapore the lowest at 10%. The relevant agreement was reached through direct negotiations between US President Trump and Indonesian President Prabowo. Trump stated that the US will obtain full access to Indonesian copper and other products without paying tariffs, which has never happened before.
Chinese Enterprise Invests $2 Billion in Nickel Smelting Project
The 2025 China (Guangdong)-ASEAN Trade Promotion and Supply Chain Cooperation Mechanism Building Exchange Meeting was recently held in Guangzhou, during which Guangxin Group signed the Indonesia Guangqing Nickel-Cobalt HPAL Project. The new project, jointly developed by Guangxin Group and Tsingshan Group, is a global benchmark project with an annual output of 80,000 tons of nickel-cobalt intermediate products. The total investment is approximately US$2 billion, with trial production expected by the end of 2026 and an annual profit of about RMB 2 billion after full operation. The product is nickel-cobalt hydroxide, used in cathode materials for new energy ternary lithium batteries. Using RMB for capital contribution, financing, and settlement, it is an innovative case of "RMB internationalization." Guangxin Group is a wholly state-owned enterprise of the Guangdong Provincial Government, a state-owned capital investment company with manufacturing as its main body, capital investment as its primary responsibility, market orientation, and mixed ownership as its characteristic. In 2024, it was again listed in the Fortune Global 500, ranking 414th. The company actively implements the national Belt and Road Initiative, with overseas revenue accounting for 36%. ASEAN is one of its main overseas business bases, with revenue from ASEAN accounting for 86.3% of the group's overseas revenue, serving as an important growth engine. Starting from foreign trade, the company has accelerated the implementation of manufacturing and supply chain projects in ASEAN in recent years, such as the Indonesia Guangqing project jointly established with Tsingshan Group in Indonesia in 2014, as well as related projects in Vietnam, Thailand, Cambodia, and Singapore. The Indonesia Guangqing Nickel-Cobalt HPAL Project is another milestone in deepening industrial chain cooperation between Guangxin Group and ASEAN. It will provide an effective guarantee for the stable supply of nickel resources for global new energy batteries. The group will also leverage this to increase investment and layout in ASEAN, jointly build a more resilient cross-border industrial chain, and contribute to the development of Guangdong and the construction of a community with a shared future for neighboring countries.
Chinese Company Invests IDR 649 Billion in Textile Factory Construction
The Vice Minister of Industry recently announced that Chinese-invested company PT Xinhai Knitting Indonesia and H&M are investing IDR 649 billion (approximately USD 40 million) in Central Java to build a textile and textile products (TPT) factory. The factory covers an area of 8 hectares, is expected to create 8,000 jobs, and production is scheduled to start in July 2026. It will utilize solar panels and a wastewater treatment system that meets green industry standards. The TPT industry is a priority sector for Indonesia's national industrial development and is crucial for economic growth.
China-Indonesia Enterprise Cooperation in the Automotive Charging Sector
ZD Energy and Indonesia's Indomobil Group have officially established a joint venture. Senior leadership teams from both sides attended the signing ceremony, marking a key step in ZD Energy's globalization strategy in the Southeast Asian market. Indomobil Group, a subsidiary of the Salim Group—one of Indonesia's largest conglomerates—has a history of over 50 years and is a leading automotive industry giant in Indonesia. It operates more than 20 internationally renowned automotive brands including Volkswagen, Nissan, and Suzuki, and possesses rich local automotive supply chain resources. Founded in 2010, ZD Energy is a global leader in new energy vehicle charging and green energy digital technology.
Indonesian Ambassador Encourages Chinese Enterprises to Invest in Indonesia
Djauhari Oratmangun, Indonesian Ambassador to China, recently stated at a forum for Chinese enterprises going global that China's investment in various sectors in Indonesia has been doubling annually, reaching 8.1 billion USD in 2024, compared to approximately 800 million USD in 2014. China is Indonesia's largest trading partner, with bilateral trade reaching 147.8 billion USD in 2024, a year-on-year increase of 6.1%. Of this, Chinese exports amounted to 76.7 billion USD (up 17.6% YoY), while imports were 71.1 billion USD (down 4% YoY). China is the second-largest source of foreign investment for Indonesia, and Indonesia is China's second-largest investment destination in ASEAN. He called on more Chinese enterprises to come to Indonesia, not only to invest but also to grow together, learn from each other, and jointly create solutions.
Chinese automobile brands are deploying in the Indonesian market
Indonesia, as the largest automobile market in Southeast Asia, sold 866,000 vehicles in 2024, a year-on-year decrease of 13.9%; with a population of over 280 million, a large young population, and huge consumption potential, it is the second largest automobile producer in Southeast Asia. The government has made electric vehicles a national priority industry, formulated development plans, improved fiscal and tax incentive policies (tax incentives, purchase subsidies, etc.), and issued a nickel ore export ban. Indonesia is rich in nickel, cobalt and other mineral resources, hoping to leverage these resource advantages to become a key player in the global electric vehicle supply chain. Wuling landed in West Java in 2015, started production in 2017 with an annual capacity of 150,000 vehicles, and in 2024 invested in building a battery pack assembly line and a core supplier park; in 2022, it launched the Wuling Air EV (right-hand drive version), becoming the first mass-produced electric vehicle model in Indonesia; in May 2025, the global 3 millionth new energy vehicle rolled off the production line in Indonesia, and the Shenlian battery has also been put into production. GAC's smart factory in Jakarta was completed and put into operation in July 2025, introducing "lighthouse factory" standards, with annual capacity gradually expanding from 20,000 to 50,000 vehicles, focusing on pure electric vehicles, gradually introducing plug-in hybrids and hybrid models, covering SUV, MPV and other segments, and developing 7-seat models. BYD's Indonesia factory is under construction, planned to be completed by the end of 2025, with a planned capacity of 150,000 vehicles, and will gradually adopt localized supply chains after production, cooperating with Indonesian nickel mining companies to build a battery material base, expected to achieve localized production of lithium iron phosphate batteries in 2026, reducing costs by 30%. XPeng is cooperating with PT Handal Indonesia Motor (HIM), which will be responsible for localized assembly of the XPeng G6 and X9 models using the completely knocked down (CKD) method; the XPeng X9 right-hand drive version will be produced in Indonesia in July 2025. Skyworth achieved localized production in early June 2025 through OEM by Polytron, a subsidiary of the Charoen Pokphand Group, with its Skyworth K model rolling off the line as the Polytron G3. CATL, Huayou Cobalt, Tsingshan Holding, CMOC Group, GEM Co., Ltd. and other battery and material manufacturers have entered the Indonesian market to deploy battery and material production.