The investment brochure for Jakarta is still on the conference table, while the location drawings for domestic factories have rolled up corners. When Chinese enterprises are held back by the frequent fluctuations of labor, taxation, and mining policies, a high-level handshake across mountains and seas has once again sounded the tone of the Southeast Asian wind, which hangs in mid air for the overseas plan.

The high-level meeting sets the direction

On July 18, 2026, Foreign Minister Wang Yi met with Indonesian Minister of Economic Coordination, Erlangga, in Shanghai, and the talks established two core directions. One is that China and Indonesia join hands to resist decoupling and supply chain disruptions, maintain stability in the industrial and supply chains, and have long-term complementary advantages in mineral, manufacturing, new energy, and digital industries. The overall trend of cooperation will not change. Secondly, the Chinese side has raised demands and expects Indonesia to create a fair, stable, and predictable business environment for Chinese enterprises, which has received a positive response from the Indonesian side.

Indonesia releases multiple investment benefits

Elronga, on behalf of the Prabowo government, publicly stated that they are facing various operational pain points of Chinese enterprises. At the national level, we welcome Chinese investment to expand. China has long been Indonesia's primary trading partner and an important source of foreign investment. President Prabowo has taken the initiative to invite domestic enterprises to invest in Indonesia, and there are no restrictions on Chinese investment orientation in top-level policies. Continuously optimize the business environment for foreign investment. Indonesia will unify and standardize the rules for foreign investment supervision, and enhance policy transparency and continuity in areas such as foreign work visas, social security verification, tax inspections, cross-border foreign exchange settlement, and park access.

The construction of dual parks in both countries is accelerating. The park can enjoy policies such as income tax reduction, equipment exemption, simplified employment, and local currency settlement, effectively reducing the labor, tax, import and export compliance costs and business risks of enterprises. It is the preferred carrier for Chinese enterprises to land. Expand key cooperation tracks. In addition to the traditional nickel copper smelting industry, artificial intelligence manufacturing, photovoltaics, energy storage, and green new energy have been included as key areas of cooperation, and light industry manufacturing and new energy enterprises have ushered in layout opportunities.

Three main criteria for restarting the layout

Policy uncertainty has significantly decreased. Regular high-level communication between the two countries, official coordination channels for enterprise employment, mineral resources, and funding difficulties, and higher-level coordination for local restrictive policies will enhance the stability of the business environment. The industrial advantages of Indonesia are difficult to replace. The local area has abundant nickel ore resources, a huge domestic demand market, and a zero tariff export channel in ASEAN. The position of Southeast Asia as a manufacturing base is difficult to shake in the short term, and continued observation may miss the window for layout. Keywords: China Indonesia cooperation, overseas investment, new energy

Pre compliance planning to mitigate risks. The majority of business anxiety comes from unfamiliarity with local foreign investment registration, labor, and financial and tax regulations. Proper compliance planning can avoid the vast majority of business risks. This high-level meeting effectively boosted market confidence and released positive signals from the national level to stabilize foreign investment. Companies that have previously shelved their overseas plans due to policy fluctuations can reassess the timing of investing in Indonesia.Editor/Gong Ziwei