“An Introduction to Doing Business in Indonesia 2025” highlights Indonesia’s strong FDI momentum, driven by mining and manufacturing, its pivotal role in EV battery production, and strategic benefits for foreign investors.
New Publication Release
The latest publication from Dezan Shira & Associates, “Introduction to Doing Business in Indonesia 2025,” is now available for download at the Asia Briefing Publication Store. This comprehensive guide provides invaluable insights for businesses and investors looking to enter the Indonesian market.
Strong Foreign Investment
In 2024, Indonesia attracted US$55.3 billion in foreign direct investment, a 21% increase from the previous year. Major sectors such as mining, metal refining, and manufacturing experienced substantial growth, with significant contributions from Singapore, China, and Hong Kong. This underscores Indonesia’s pivotal role in global supply chains and highlights international confidence in its economic potential.
Growing Industrial Strength
Indonesia’s downstream mineral processing sector is a key growth driver. Leveraging its vast nickel reserves, the country has shifted from exporting raw ore to producing refined products, crucial for industries like electric vehicle battery manufacturing. From 2020 to 2023, Indonesia’s nickel export value skyrocketed from US$1.4 billion to US$34.8 billion, emphasizing its role in the clean energy economy.
This rapid growth has attracted significant foreign investment, with global companies establishing partnerships and facilities in Indonesia to tap into its nickel processing capabilities. The government’s policies, including export bans on raw nickel ore and incentives for local processing, have further strengthened the country’s position as a global hub for nickel-based industries. Looking ahead, Indonesia aims to expand its downstream capabilities to include more advanced technologies, such as recycling and sustainable nickel production, ensuring its pivotal role in the global transition to clean energy.
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