Indonesia-China Forge Stronger Economic Ties with Major Investments in Central Java

In 2025, Indonesia and China have significantly strengthened their economic partnership, focusing on substantial investments in Central Java. Key projects include a $975 million investment from China's Fujian province in Batang's Special Economic Zone and a $478 million electric vehicle battery plant in Kendal. These initiatives aim to boost industrial growth, technology transfer, and employment in the region.

In a strategic move to bolster economic collaboration, Indonesia and China have embarked on significant investment ventures in Central Java. These initiatives are set to enhance industrial development, create employment opportunities, and foster technological advancements in the region.

Major Investment Agreements

1. Fujian Province's $975 Million Investment in Batang

China's Fujian provincial government has announced a substantial investment of approximately 16 trillion rupiah ($975 million) in Indonesia's Special Economic Zone located in Batang, Central Java. This investment aims to develop industrial infrastructure and attract further business ventures to the area.

2. Electric Vehicle Battery Plant in Kendal

In Kendal, Central Java, a significant development is underway with the construction of an electric vehicle (EV) battery plant. This project, a collaboration between China's BTR New Material Group and Singapore's Stellar Investment, involves an initial investment of $478 million. The plant is expected to produce 80,000 metric tons of anode materials annually, contributing to Indonesia's growing EV industry.

Strategic Importance of Central Java

Central Java has emerged as a focal point for foreign investment due to its strategic location, supportive government policies, and availability of skilled labor. The region's development aligns with Indonesia's broader economic goals, including infrastructure enhancement and industrial diversification.

Broader Economic Collaboration

The investments in Central Java are part of a larger framework of economic cooperation between Indonesia and China. During recent high-level meetings, both nations have expressed commitment to deepening ties across various sectors, including trade, infrastructure, and technology.

Conclusion

The burgeoning partnership between Indonesia and China, exemplified by significant investments in Central Java, marks a pivotal step toward economic growth and regional development. These projects not only promise to enhance industrial capabilities but also signify a strengthening of bilateral relations poised to benefit both nations in the long term.