Strategic Collaboration Accelerates Energy Transition
As global demand for sustainable solutions intensifies, China and Indonesia are deepening their economic partnership through green industrialization. With bilateral trade reaching $150.3 billion in the first 11 months of 2025—surpassing 2024’s total—the collaboration is reshaping supply chains across Southeast Asia.
EV Supply Chain Takes Center Stage
A $6 billion battery mega-project led by CATL’s subsidiary exemplifies this synergy. Slated to produce enough batteries for 300,000 EVs annually, the venture integrates nickel mining to finished battery assembly. The project aligns with Indonesia’s "down-streaming" strategy to add value to its world-leading nickel reserves while creating 43,000 jobs.
Renewables Power Progress
Chinese firms are supporting Indonesia’s net-zero 2060 goal through infrastructure projects like the Lumut Balai Phase II geothermal plant. Operational since July, this PowerChina-developed facility powers 80,000 homes and reduces CO2 emissions equivalent to 12 million trees annually.
Demographic and Policy Synergy
Indonesia’s median age under 30 provides both labor and consumer advantages, while streamlined investment policies and a 19% U.S. tariff rate enhance export competitiveness. Chinese investments totaling $35.3 billion since 2020 are concentrated in energy, manufacturing, and digital technology—key drivers of Indonesia’s industrial modernization.
