Chinese firms, which have established good relations with President Joko Widodo’s cabinet, are quietly putting out feelers ahead of the changeover of administration.
Over the past ten years, China has emerged as a significant foreign investor in Indonesia. Between 2019 and 2022 alone, according to data from the Ministry of Investment, Chinese companies invested $20.9 billion across 9,080 projects in the country.
Chinese investments in Indonesia can be categorized into two distinct groups. The first are those of state-owned enterprises (SOEs) and state-supported initiatives, which encompass major infrastructure projects like railways, power plants, and other government-sponsored developments.
The second includes investors from the private sector, represented by companies such as Tsingshan, a key investor in nickel processing; China Hongqiao, which has a focus on alumina smelters; TikTok, which has carved out a large market in Indonesia; and institutional investors with stakes in various Indonesian firms.
Having benefited from the support of President Joko “Jokowi” Widodo over the past decade, Chinese private enterprises now face uncertainties with the ongoing transition of power to Defense Minister Prabowo Subianto, who won last month’s presidential election decisively.
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