Recently, Indonesia is becoming a new favorite for Chinese investors. Although the direct investment from mainland China to Indonesia in the first half of 2025 slightly decreased year-on-year, reaching 3.6 billion USD, it still ranks third among foreign investment source countries in Indonesia, only behind Singapore and Hong Kong. Multiple factors are driving this trend.

First of all, the support of the Indonesian government's policies is indispensable. They have launched a series of measures to attract foreign investment, especially in the development of downstream industries. Chinese investors account for 12% of the investments in these areas, with a total scale of up to 280.8 trillion Indonesian rupiah. In addition, the "golden visa" program introduced by Indonesia has also attracted the attention of some Chinese investors.

Secondly, Indonesia's vast market potential is a major highlight. As the seventh largest economy in the world, Indonesia has a population of over 270 million, providing Chinese investors with a broad consumer market space.

Moreover, Indonesia's abundant natural resources are also an important factor attracting Chinese investment. The country is rich in resources such as nickel, copper, and coal, which hold great appeal for related industries in China. For example, in Indonesia's nickel smelting industry, Chinese companies have made large-scale investments, with Qingshan Holding and Jiangsu Delong Nickel Industry jointly controlling over 70% of Indonesia's nickel refining capacity.

It is worth noting that Chinese companies choose to invest in Indonesia also to avoid high tariffs. Due to the United States imposing import tariffs of over 30% on Chinese products, while the tariffs on similar goods from Indonesia are only 19%, this has prompted some Chinese companies to set up factories in Indonesia.

However, the large influx of Chinese enterprises has also brought some impacts. In the first quarter of 2025, the prices of industrial land and warehouses in Indonesia increased by 15%-25% year-on-year, marking the largest increase in 20 years.

Overall, China's investment in Indonesia is shifting from traditional mineral processing to more diversified fields. This change in investment model not only reflects the globalization strategy of Chinese enterprises but also highlights new opportunities for Indonesia's economic development. In the future, as economic cooperation between the two countries deepens, we may see more innovative investment projects and cooperation models emerge.