Indonesia continues to strengthen its position as a key player in the electric vehicle (EV) industry, with four Chinese companies set to invest and establish EV-related manufacturing facilities in the country. 

The announcement was made by Pandu Sjahrir, Chief Investment Officer (CIO) of the Daya Anagata Nusantara Investment Management Agency (Danantara), during the Global Business Summit on Belt and Road Infrastructure Investment in Jakarta on Sunday, May 25, 2025.

"There are many [companies], but the ones making the fastest progress are perhaps three or four. I can't mention their names yet," Pandu said on Sunday, May 25, 2025.

These companies are reportedly interested in various investment segments, including EV battery development, data centers, and consumer services.

He emphasized that Chinese investments are expected to bring more than just financial benefits, but also help develop Indonesia’s human capital and technological expertise.

A similar sentiment was echoed by Mahardi Tunggul Wicaksono, Director of the Maritime, Transportation Equipment, and Defense Equipment Industry (IMATAP) at the Ministry of Industry.

He noted that several automotive companies from both China and Europe are showing strong interest in exploring investments in Indonesia’s EV and battery sectors. This growing interest has been partly driven by U.S. import tariffs, which have encouraged companies to shift their strategies.

“There are some producers from the EV and battery industries in China who have already begun discussions with us,” Mahardi said during a discussion on the effectiveness of automotive incentives held in Jakarta on Sunday, May 25, 2025.

He added that trade tensions like tariff wars do not always result in negative outcomes. In fact, they have spurred a wave of companies, particularly from China and increasingly from Europe, to consider relocating or expanding their investments to Indonesia.

“Most of them are from China, and some from Europe have also expressed interest,” Mahardi said.

He did not disclose the exact value of the potential investments, but confirmed that these companies are not only looking to start new projects, but also to transfer parts of their existing operations to Indonesia.

This wave of foreign investment is expected to accelerate Indonesia’s transition to a green economy while positioning the country as a regional hub for EV production.