Sigit Puji Santosa, chief technology officer (CTO) of sovereign wealth fund Danantara, who is also CEO of state defence contractor PT Pindad, revealed the company’s plan to develop an industrial estate in Subang, West Java province to kick start production of the so-called ‘national car’ in two years time.

It is almost certain that domestic car sales in 2025 failed to cross 800,000 units, way below 2024 (865,723 units). The government refused to admit lower purchasing power behind the falling sales, blaming financing issues instead. 

Aluminium was among the best performing metals in 2025, gaining 18.5% from 2024. While China, the world’s top aluminium producer, has been trying to slow down expansion, their manufacturers have grown more smelter grade alumina (SGA) capacities in Indonesia.

2025 was a bad year for Indonesian textile industry with the closure of Sritex Group. Tens of thousands workers were kicked out from the industry due to falling revenues and squeezed margins. The new year might be worse with potential implementation of reciprocal tariff of 19% by US government.

Persistent oversupply, particularly in China, and sotened demand led to nearly 16% fall of polypropylene (PP) resin price last year. Yet, PT Polytama Propindo (PLTM), the second largest manufacturer of polypropylene resin (PP resin) in Indonesia behind Chandra Asri, decided to grow its capacity significantly in the coming years.

South Korea’s biopharmaceutical company, SK Plasma in a collaboration with Indonesia Investment Authority (INA) sovereign fund has built the first plasma fractionation facility in Indonesia and the largest in Southeast Asia.

Amidst downfall of foreign direct investment (FDI), two South Korean companies have recently signed a memorandum of understanding (MoU) to establish a joint venture for production of chemicals in Indonesia.

Some media outlets quoted Rosan P Roeslani, minister of investments and CEO of sovereign wealth fund Danantara, last Friday (Dec 19) saying one aluminium smelter project with estimated investment of US$24 billion will start ground breaking of construction next month. Typo?

Trade wars and energy transition programs give Indonesia an opportunity to host solar panel manufacturers relocated from China. Policy stability, however, is needed because of competition with neighbouring countries like Vietnam and Malaysia.

The Vietnamese EV manufacturer VinFast has officially inaugurated its manufacturing plant in Subang, West Java province with an initial production capacity of 50,000 units per annum, following its Indian factory’s inaugurated last August.