News - Hong Kong Investors Show Growing Interest in Indonesia’s Industrial Estates

Hong Kong Investors Show Growing Interest in Indonesia’s Industrial Estates

Mar, 11 2026

Interest from Hong Kong investors in Indonesia’s industrial estates continues to increase, in line with the global supply chain shift toward Southeast Asia.

This perspective was highlighted during the business forum “Indonesia Infrastructure Transformation – Unlocking Cross Border Investment Opportunities”, held in Hong Kong on March 4 and organized by HSBC and the Federation of Hong Kong Industries.

During the forum, PT Suryacipta Swadaya, a subsidiary of PT Surya Semesta Internusa Tbk, presented its perspective on the development of industrial estates in Indonesia, particularly in relation to the ongoing global supply chain relocation.

According to Suryacipta’s Chief Commercial Officer, Abednego Purnomo, investors today are not only looking for industrial land. Manufacturing companies are increasingly seeking industrial areas that provide integrated logistics systems, digital infrastructure, and support for energy transition.

This shift in demand is also linked to Indonesia’s effort to reduce its national logistics costs. Currently, logistics costs account for approximately 23 percent of Indonesia’s Gross Domestic Product (GDP). The government aims to reduce this ratio to around 8 percent by 2045.

The presence of Patimban Port in West Java, which is projected to become a major automotive export hub, is expected to help improve logistics efficiency. The infrastructure is also anticipated to strengthen connectivity for surrounding industrial estates, including Subang Smartpolitan.

Hong Kong remains one of the most important sources of capital for Indonesia. Direct investment from Hong Kong reached approximately US$ 35.5 billion between 2021 and 2025, making it one of the largest contributors of Foreign Direct Investment (FDI) to the country.

During the discussion, investors also highlighted the importance of speed-to-market, emphasizing that regulatory certainty and infrastructure readiness are key factors in accelerating the start of production activities.

In addition, the trend toward green industrialization is becoming an increasingly important consideration for global investors. Industrial estates are expected to provide infrastructure that supports energy efficiency and emission reduction targets.

Investment data shows that the metal industry sector has been the largest recipient of FDI from Hong Kong, accounting for approximately 19.7 percent during the 2021–2025 period. Looking ahead, electric vehicle battery development and the pharmaceutical industry are expected to present promising investment opportunities.

[Source]

Cirebon Investment Reaches Rp2.25 Trillion by August 2025

INILAHCIREBON.ID, – The Cirebon Regency Government, West Java, recorded an investment realization of Rp2.25 trillion by August 2025. This figure is equivalent to 65 percent of the annual target of Rp3.2 trillion. The Head of the Cirebon Regency Investment and Integrated Services Agency (DPMPTSP), Hilmi Rivai, said that this achievement was quite encouraging. However, he emphasized that there was still a lot of work to be done to actually reach the target. "The investment realization is already Rp2.25 trillion or 65 percent of the target. We are optimistic that we can reach Rp3.2 trillion by the end of the year," said Hilmi in Cirebon on Tuesday (2/9/2025). Footwear Factory Becomes Main Pillar Hilmi explained that the majority of investments are still supported by the footwear industry. Many investors, including local entrepreneurs, are investing capital through the construction of new factories and expansion of production capacity. This labor-intensive sector is considered the driving force behind investment in Cirebon Regency because it is able to absorb a large workforce. “The labor-intensive industry is still showing a positive trend. Investors see Cirebon as quite potential,” said Hilmi. Encouraging Quality Investment Furthermore, Hilmi emphasized the importance of a long-term strategy so that investment does not only pursue quantity but also quality. The local government, he said, is committed to creating a business climate that is friendly to investment while providing tangible benefits to the community. “Without fundamental reforms, the realization of investment will only be a statistical achievement that does not touch the welfare of the community,” he said. Accelerating Services and Digitalization To support this, the Cirebon Regional Government has accelerated licensing services with a digital system. Investors also receive assistance from the planning stage until the permit is completed. In addition to the footwear industry, the local government has begun to expand the promotion of other sectors such as tourism, modern agriculture, and the creative industry. “We want the investments that come in to not only be large in terms of numbers, but also sustainable and have an impact on the community,” said Hilmi. [SOURCE]

Dec, 03 2025

West Java Legislators Encourage South West Java Development Through Investment

INILAHKORAN, Bandung - West Java legislator Yod Mintaraga encouraged the West Java Provincial Government to develop the South West Java region through investment. Because according to Yod, so far the development in South West Java is still far from other regions, so it needs to be encouraged for equalization. One of them is through investment, both foreign and local. Moreover, he admits that there is a lot of potential that can be developed in South West Java, to be encouraged to improve the welfare of the people of the region. "Investment must be encouraged to South West Java. Now there is still a gap, there are still many poor people in southern West Java, but we do not rule out the possibility that in big cities poverty still occurs," said Yod, recently. The hope is that investment will also accelerate connectivity in the region, as well as infrastructure. Because both are central, in accelerating equitable development. Given that this, said Yod, is interrelated, because a representative link is needed to encourage investment. "If investment is encouraged to South West Java, the risk is that infrastructure development must also be encouraged to South West Java," he said. (SOURCE)

Jul, 08 2024

Bekasi Regency Prepares Draft Regional Regulation Providing Incentives to Facilitate Investment

The Bekasi Regency Government and the local DPRD are currently preparing a draft regional regulation (Raperda) providing incentives and making investment easier for investors. The Draft Regional Regulation, which will become a Regional Regulation, will come into force in 2025, so that domestic and foreign investors will have certainty about the legal umbrella for investment in Bekasi Regency. "We want to create a legal basis for providing incentives to investors to create jobs and strengthen the regional economy," said the Acting Regent of Bekasi, Dedy Supriyadi, quoted Thursday (7/11/2024). According to Dedy, these regulations are needed to create a conducive investment climate by prioritizing the principles of sustainability and community welfare. And this is one of our priorities, he added. To speed up the discussion of the Draft Regional Regulation, it will continue with discussions on the Budget Agency (Banggar) and the Special Committee (Pansus) of the Bekasi Regency DPRD. In future Special Committee meetings, all relevant regional apparatus will assist so that it can run smoothly as expected. In this way, investors who will invest their capital in Bekasi will feel safe and conducive. In recent records, Bekasi Regency has succeeded in attracting investors to invest. In 2024, the investment realization target of IDR 50 trillion has been successfully achieved. (SOURCE)

Nov, 18 2024

Prabowo Urges Major US Companies to Increase Investment in Medical Equipment in Indonesia

jabar.jpnn.com, BOGOR - President Prabowo Subianto invited the American multinational company, General Electric (GE), to increase investment in medical equipment production in Indonesia. Prabowo made the invitation while attending the Gala Iftar Dinner Business Summit in Washington, DC, on Wednesday evening (February 18th) local time. In an audio recording received in Jakarta on Thursday (February 19th), he assessed the opportunities for broader cooperation with the establishment of ten new universities based on science, technology, engineering, and mathematics (STEM) and medicine in Indonesia. "I think there are also opportunities for the United States. I think General Electric is building medical equipment in Indonesia, and we hope they will increase their production," Prabowo said. Addressing the American business community, the President explained that Indonesia still faces a shortage of around 140,000 doctors. Meanwhile, the number of medical graduates each year is only around 10,000. "This means it will take around 14 years to close the gap, unless there are concrete new efforts. That's why I'm creating 10 new universities based on STEM and medicine," he said. Previously, during a state visit to the UK, Prabowo also designed a framework for educational cooperation through the construction of ten new campuses in the fields of medicine and STEM, including a lecturer exchange program with educational institutions in the UK. According to Prabowo, increasing the number of medical campuses and medical graduates will open up opportunities for greater collaboration with global companies, including GE, particularly in the development and production of medical equipment domestically. He also emphasized the government's commitment to supporting the influx of new investment. Prabowo mentioned that several bureaucratic obstacles previously complained about by investors have been resolved. "We will support it. There were bureaucratic obstacles, but we resolved them very quickly. I also received feedback a few hours ago from several corporations complaining about the slow resolution of their problems," Prabowo said. The government hopes that increased investment in the medical device sector will strengthen the independence of the national industry and support the fulfillment of Indonesia's healthcare needs. [SOURCE]

Feb, 20 2026

Karawang EV Battery Plant Set to Begin Operations in Late July 2026, Boosting Clean Energy Investment

The industrial zone in Karawang Regency, West Java, continues to strengthen its position as a hub for Indonesia's strategic industries. After more than a year of construction, the integrated electric vehicle (EV) battery manufacturing plant, developed through a collaboration between global companies and Indonesian state-owned enterprises, has entered its final stage of completion. The facility is scheduled to commence operations in late July 2026, marking a significant milestone in strengthening Indonesia's electric vehicle ecosystem. The project is being developed by a consortium comprising Contemporary Amperex Technology Co. Limited (CATL), PT Aneka Tambang Tbk (Antam), and Indonesia Battery Corporation (IBC). Located in Karawang, the plant will have an annual production capacity of 15 gigawatt-hours (GWh) of battery cells. Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed that construction of the facility has been completed. He made the announcement after attending a meeting with President Prabowo Subianto at the Merdeka Palace in Jakarta on Monday (June 22, 2026). "The electric vehicle battery project developed through the collaboration between CATL and Antam has been completed. Its inauguration is scheduled for late July," Bahlil said. The battery plant forms part of Indonesia's integrated EV battery industry project, spanning the entire value chain from upstream to downstream under the government's mineral downstreaming strategy. The project covers nickel ore processing, refining, battery material production, and battery cell manufacturing to serve both the domestic electric vehicle industry and export markets. The project carries a total investment value of approximately US$5.9 billion (around Rp96 trillion). It is being developed by Ningbo Contemporary Brunp Lygend Co. Ltd. (CBL)—a joint venture established by CATL, Brunp, and Lygend—in partnership with Antam and IBC as Indonesia's national partners. Development of the battery industrial complex began with a groundbreaking ceremony led by President Prabowo Subianto in June 2025 in Karawang. Since then, the project has been accelerated as part of the government's strategy to increase the value-added of Indonesia's nickel resources while reducing dependence on raw material exports. Prior to this project, Indonesia had already established its first EV battery cell manufacturing facility through PT HLI Green Power, a joint venture between Hyundai Motor Group, LG Energy Solution, and IBC, which began operations in Karawang in July 2024. With an investment of approximately Rp13.5 trillion, the facility became Indonesia's first EV battery cell manufacturing plant and one of the largest in Southeast Asia. The commencement of operations at the CATL–Antam–IBC battery plant is expected to further strengthen Indonesia's position as one of the world's emerging electric vehicle battery manufacturing hubs. In addition to expanding the country's production capacity, the project is projected to create new employment opportunities, attract further investment in clean energy-based manufacturing, and reinforce Indonesia's electric vehicle supply chain—from nickel mining and mineral processing to the production of finished battery cells. [SOURCE]

Jul, 16 2026

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