Business

Indonesia's Latest Business and Investment Developments

October 19, 2026

Indonesia is moving ahead on several projects that could reshape its economy, from data centers and railways to clean energy and tourism. Business groups, meanwhile, are raising concerns about a proposed law that could affect investor confidence. Here is a roundup of the latest developments.

Employers warn against asset confiscation bill

The Indonesian Employers' Association (APINDO) says the draft asset confiscation bill lacks strong legal safeguards. It warns that legitimate company assets could be seized, day-to-day operations could be disrupted and jobs could be put at risk, which would weaken the investment climate.

AI and digital economy cooperation with China

Indonesia wants to deepen technology cooperation with China in artificial intelligence, semiconductors and the digital economy. The plan centers on joint research, closer ties between universities and industry, and the Kura-Kura Bali Special Economic Zone as a base for these efforts.

14,000 km of railway planned by 2045

The Ministry of Infrastructure and Development aims to build or reactivate 14,000 kilometers of railway track by 2045. The government plans to spend up to Rp1,200 trillion (about US$67.04 billion) on the program, with the goal of improving connectivity and logistics and expanding sustainable transport outside Java.

Indonesia aims for a bigger share of clean-energy investment

According to the Chamber of Commerce, Indonesia wants a larger share of the US$2.3 trillion going into global clean energy. The country is counting on its critical minerals, renewable energy potential and large domestic market to play a bigger role in the global energy transition.

Danantara and Russia's direct investment fund explore joint financing

President Prabowo has urged Indonesia and Russia to turn their investment ideas into projects that can stand on their own commercially. He called for measurable targets, clear financing structures and firm implementation milestones. Danantara and Russia's direct investment fund are looking at joint financing for bankable projects.

Batang industrial zone courts Chinese investors

A memorandum of understanding between KITB and the Hangzhou Economic and Technological Development Area (HEDA) aims to bring more Chinese investment to the Batang industrial zone. The partnership also seeks to expand trade and knowledge transfer across BRICS economies.

ADB plans US$3 billion boost for ASEAN tourism

The Asian Development Bank plans to provide US$3 billion in financing for the ASEAN tourism sector over the next three years. The funding is intended to support sustainable tourism growth, job creation, infrastructure and private investment across Southeast Asia.

Used Japanese trains considered for commuter fleet

Rail operator KAI has proposed buying used Japanese train sets as a short-term way to replace aging commuter trains. The plan still needs regulatory approval and must fit the government's policy of building up domestic manufacturing.

BDx breaks ground on 640MW AI data center campus

Singapore-based BDx has started construction on a 640-megawatt AI data center campus in West Java. The project, worth hundreds of millions of dollars, will include six buildings built to handle high-density AI workloads and rising domestic demand for cloud services.

Hydropower investment call for Papua and Kalimantan

The Energy Minister is inviting domestic and foreign investors to develop major hydropower resources in the Mamberamo and Kayan river systems. The move is part of a broader push to expand Indonesia's renewable energy infrastructure.

Islands opened to data center investors

Indonesia is opening several islands to investors for data center development. The projects are to be backed by renewable energy.

US investment in Indonesia reaches Rp259.9 trillion

A report from USABC shows that US companies invested US$14.85 billion in Indonesia from 2020 through the first half of 2025. The investments covered technology, energy, mining, agriculture and financial services.

← Nusantara Ledger