Industries

Japanese car manufacturers invested billions of USD to grow capacity in Indonesia in the past decade. Domestic car manufacturing capacity is now around 2.4 million units per annum, while car sales have not returned to above 1 millionn per annum.

Indonesia recorded trade surplus of US$13.7 billion from iron and steel (HS 72) in the first eleven months of 2024, down slightly from US$14 billion in the corresponding period last year. Higher volume offsetted substantial correction of steel prices.

MNC Land (KPIG) has sold its assets worth Rp5.5 trillion in Bali Island to PT Bumi Indah Permai (BIP), the main investor of Bali Urban Subway. The transaction, which aims to fund the Bali Subway project, is targeted to be completed by January 2025. Later, BIP will use the assets for the construction of the Bali Urban Rail and Associated Development (Bali Subway) project.

Talking about energy transition, the International Renewable Energy Agency shows that Indonesia had around 574 MW of installed PV capacity at the end of 2023. Nothing compared to the added 160 GW in China in the first nine months of 2024 alone.

When it comes to ability to attract foreign tourists/visitors, Indonesia is way behind neighbouring countries like Thailand, Malaysia, Singapore, and Vietnam. The country’s huge population, however, continues to attract investments in hospitality business. Some see potential future demand despite recent correction of middle class.

China Jushi Co Ltd, member of China National Building Material (CNBM), one of the largest construction material producers in the world, has committed to invest US$1 billion in Indonesia to build a fiberglass factory. 

Eastroc Beverage, Chinese energy and electrolyte drink manufacturer plans to invest up to US$200 million to build a factory in Indonesia in order to meet growing demand for high-standard soft drinks among consumers in Southeast Asian countries.

Indonesia is among the world’s major importers of plastics and organic chemicals, among others due to poor structure of the domestic industry. In the first eleven months of 2024, import of plastics and articles from plastics reached US$9.7 billion, an increase of 12.1% from the corresponding period last year. 

PT Mineral Industri Indonesia (MIND ID), parent of Aneka Tambang (ANTM), Bukit Asam (PTBA), PT Timah Tbk (TINS), and PT Freeport Indonesia (PTFI), plans to allocate Rp20.6 trillion of investment in five projects for 2025, including smelter grade alumina refinery (SGAR) in Mempawah, aluminum smelter in Kuala Tanjung, nickel project in East Halmahera, copper smelter in Gresik, and coal infrastructure project in Tanjung Enim.