Combined investment from mainland China and Hong Kong reached US$11.5 billion in H1 2026, nearly three times the $4.1 billion recorded a year earlier.
People walk near the DayOne data center in Nongsa Digital Park (NDP) in Batam city, Riau Islands, on July 20. Batam has attracted at least 16 new data centers in various stages, despite limited clean water and electricity infrastructure . (JP/Fadli)
As United States-China trade tensions and Washington’s sweeping new tariffs disrupt global supply chains, Indonesia has a window to position itself as a new destination for foreign investment in manufacturing and industry.Indonesia has seen foreign direct investment rise amid the “China plus one” shift as companies diversify beyond China to other countries as an alternative production base, giving Jakarta fresh momentum in developing domestic industry.
“We are benefiting from the current geopolitical situation, particularly in capital-intensive industries and data centers,” Deputy Industry Minister Faisol Riza told The Jakarta Post on Aug. 13. “Many contracts are being signed even before new facilities are built.”
Indonesia has already become a relocation destination for Chinese companies for some time, Faisol said, describing the recent trend a direct benefit of the US-China trade war. The influx fit with the country’s downstream and industrialization push, he added.
