Chinese investment in Indonesia has gained momentum as US tariffs push more companies to seek new markets. Rising costs for Chinese exports have accelerated the “China+1” strategy, which encourages relocation to Southeast Asia. Indonesia, with its vast consumer market and industrial infrastructure, is now emerging as a top destination for expansion. Major industrial players such as Jababeka are preparing to seize these opportunities across multiple sectors and regions.
Chinese Investment in Indonesia Gains Momentum
Chinese companies have shown increasing interest in Indonesia since early 2025. PT Jababeka Tbk. President Director Setyono Djuandi Darmono noted a significant uptick in visits and investment inquiries. “Since early 2025 we’ve seen growing interest and visits from Chinese and East Asian companies. The US tariff policy has driven the China+1 strategy, making Indonesia—including Jababeka—a relocation destination,” Darmono said.
The majority of these companies are targeting industries such as energy, electric vehicles (EVs), electronics, and logistics. Jababeka’s industrial areas in Cikarang, Kendal, and Batang are drawing attention due to their infrastructure and government support. These zones offer competitive costs and access to skilled labor, which enhances Indonesia’s appeal compared to its regional peers.
US Tariffs Drive Relocation to Southeast Asia
The tariff gap has become a major driver of relocation. The United States imposed import duties of more than 30% on Chinese goods, while products from Indonesia, Malaysia, the Philippines, and Thailand face 19%, and Vietnam 20%. This disparity has created urgency for Chinese companies to shift operations.
Reuters reported that industrial consultant Gao Xiaoyu, founder of PT Yard Zeal Indonesia, has received a surge of inquiries. “We have been quite busy lately. We’re in meetings from morning to night,” Gao explained. His firm has expanded from four employees in 2021 to more than 40, reflecting the rising demand. The tariff pressure, combined with Indonesia’s consumer potential, makes the country a prime relocation target.
Read More: Indonesia Export Tariffs Set at 19% in US Deal – Benefit or Burden?
Indonesia Industrial Expansion Targets Key Sectors
Indonesia’s industrial zones are adapting quickly to meet investor needs. Areas such as West Java’s Subang Smartpolitan, covering over 2,700 hectares, have reported overwhelming interest. “Our phones, emails, and WeChat accounts were suddenly flooded with agents introducing clients. Coincidentally, all of them are from China,” said Abednego Purnomo, Vice President of Sales, Marketing, and Tenant Relations at Suryacipta Swadaya.
Companies across various sectors, from toy manufacturing and textiles to EV production, are eyeing facilities near key logistics infrastructure such as the Patimban deep-sea port. Rivan Munansa, Head of Industrial and Logistics Services at Colliers International Indonesia, observed the speed of this shift. “Most of them [Chinese companies] are looking for immediate opportunities. They want land and ready-to-use buildings, like a fast-track program,” he said.
Jababeka Investment Opportunities in Multiple Regions
Jababeka is positioning itself to capture this relocation wave. Darmono outlined plans for multiple strategic projects.
- Cikarang will evolve into a modern metropolitan hub integrated with Jakarta.
- Kendal and Batang will focus on labor-intensive industries and EV ecosystems, benefiting from Central Java’s competitive cost base.
- Tanjung Lesung is being developed into an international maritime tourism destination, supported by an 89 km toll road nearing completion and a pioneer airstrip.
- Morotai is planned as an international logistics hub for Eastern Indonesia, beginning with tourism and fisheries before scaling to large-scale logistics.
Together, these projects position Jababeka as a comprehensive investment ecosystem, offering diverse opportunities across industrial, tourism, and logistics sectors. By leveraging strategic locations, government support, and competitive costs, Jababeka is set to attract a wide range of investors seeking growth in Indonesia’s expanding market.
Indonesia Consumer Market Growth Attracts Global Investors
A key factor driving investment is Indonesia’s vast consumer market. With more than 280 million people, it is Southeast Asia’s largest economy and the world’s fourth most populous country. Investors view this as a gateway to regional dominance. “If you can establish a strong business presence in Indonesia, you’ve essentially captured half of the Southeast Asian market,” said Zhang Chao, a Chinese manufacturer of motorcycle headlights operating locally.
This scale gives Indonesia a competitive edge over neighboring countries. Its domestic demand reduces dependency on exports, offering investors stability even as global trade shifts.
Read More: Indonesia Housing Market Heats Up With Foreign Investors
Outlook for Indonesia’s Investment Landscape
The surge of Chinese investment in Indonesia underscores the impact of US tariffs and the urgency of diversification strategies. Industrial zones are rapidly adapting, while companies like Jababeka are aligning projects with sector demands. Combined with a vast consumer base and supportive infrastructure, Indonesia is positioned to become Southeast Asia’s leading hub for manufacturing, logistics, and investment in the years ahead.
Source: ekonomi.bisnis.com
Image: pexels
