China’s Green Eco Manufacture (GEM) will invest approximately US$293.2 million to expand the annual capacity of its ternary precursor plant in Indonesia and establish a joint venture (JV) with EcoPro, a South Korean EV battery material firm.

Two leading biopharmaceutical companies from China have recently secured registration of their respective products from Indonesian Food & Drug Administration (BPOM), intensifying competition in the market.

US President Donald Trump plans to impose 25% tariffs on all steel and aluminium. It remains unclear whether Indonesia, an exporter of steel and alumina (key raw material for aluminium), will be subject to the tariffs. 

World crude steel production for the 71 countries reporting to the World Steel Association (worldsteel), which accounted for around 98% of total world production, was 1.84 billion tons last year, down 0.9% from 2023, dragged down mostly by lower production in Asia, North America, and Russia.

Domestic cement consumption might grow 6 million tons per annum from full implementation of President Prabowo’s ambitious three million homes per annum program. That would be significant to reduce the pathetic oversupply which hit the industry in the past 15 years or so. Doubts over the program, however, might force faster consolidation in the cement industry.

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.

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.