(Image source: Internet https://reurl.cc/Wzg2Gx)
On October 8, Indonesian President Prabowo attended the launching ceremony of a downstream industrial project in North Maluku Province and made a solemn statement to investors at home and abroad: the Indonesian government will respect and protect all investments established in Indonesia, regardless of their origin. He particularly emphasized that treating partners well is a tradition of the Indonesian nation, and foreign partners willing to cooperate should be regarded as brothers and family members. “Safeguarding our partners who trust us is Indonesia’s national honour.”
Against the backdrop of rising uncertainty in the global investment environment, this statement sends a clear policy signal to foreign investors, including Chinese-funded enterprises. As Indonesia’s largest trading partner and major source of investment, Chinese enterprises have a direct stake in these developments.
Chinese Capital in Indonesia: Growing in Scale and Depth
Data from Indonesia’s Ministry of Investment and Downstream Industry shows that China’s realised foreign direct investment (FDI) in Indonesia totalled approximately USD 38.3 billion from 2021 to the first half of 2026, with a compound annual growth rate (CAGR) of 24.2% between 2021 and 2025. In H1 2026, combining mainland China and Hong Kong, Greater China ranked as Indonesia’s top source of foreign investment at USD 11.5 billion, accounting for 37.5% of total realised foreign investment. By sector, 44% of Chinese investment is channelled into basic metal processing, concentrated in downstream nickel smelting, with cumulative investment of USD 13.9 billion.
Chinese-funded projects have also delivered remarkable results in job creation. Between 2021 and 2025 alone, Chinese investment in Indonesia supported more than 700,000 local jobs. The industrial park visited by the President now employs over 100,000 workers, with cumulative investment of USD 20 billion and planned additional investment of USD 7 billion in the future.
Deepening Cooperation Mechanisms
The institutional framework for China-Indonesia economic and trade cooperation continues to improve. The construction of the China-Indonesia “Two Countries, Twin Parks” initiative is advancing steadily under the Belt and Road Initiative. It pairs industrial parks in Indonesia with their counterparts in China to integrate investment, manufacturing, logistics and market access between the two nations, moving from conceptual design to tangible implementation. In 2025, bilateral trade between China and Indonesia surpassed the USD 150 billion milestone for the first time, reaching USD 167.49 billion. According to Indonesian statistics, China’s direct investment in Indonesia stood at USD 7.5 billion in 2025.
In his address, Prabowo also refuted external narratives that “Indonesia’s prospects are bleak”. He stated that what he witnessed on-site at the industrial facility proves Indonesia has a bright future. For Chinese enterprises expanding or planning to enter the Indonesian market, the President’s public pledge undoubtedly adds institutional certainty to investment decisions.
