Chinese Investors Aggressively Open Factories in Indonesia

Indonesia’s industrial landscape is undergoing significant transformation. According to the latest Colliers report, Chinese investors have become the most dominant and aggressive actors in acquiring industrial land and opening new factories in the country. This activity is part of the ‘China Plus One’ strategy, driven by geopolitical tensions and shifts in global trade tariffs effective November 2025. Colliers data shows industrial land uptake reached 200.48 hectares in the Jabodetabek area and surroundings. Modern Cikande and Greenland International Industrial Center (GIIC) have become the favorite destinations for Chinese investors. These companies aim to avoid tariffs by taking advantage of Indonesia’s more competitive trade rates. The domestic market in Indonesia, with over 280 million residents, is also targeted by manufacturers of FMCG and electronics. Additionally, China’s investments in nickel and battery sectors have attracted supply chain companies to build component factories around Karawang and Bekasi. While the automotive and EV sectors grab headlines, significant movement is noted in the chemical and machinery sectors.