Why Is Jakarta Becoming the New Favourite for Chinese Business Hubs in Southeast Asia?

In recent years, as China–Indonesia bilateral cooperation continues to deepen, Chinese enterprises are accelerating their steps toward expanding into Indonesia.

As the largest economy in Southeast Asia and a key node of the Belt and Road Initiative, Indonesia is attracting an increasing number of Chinese companies to set up strategic operations. Among its cities, Jakarta—with its capital status and super-aggregation of resources—is rapidly becoming the top choice for establishing regional headquarters in Southeast Asia.

1. Outstanding Geographical Advantage, Gateway to the Entire ASEAN Region

Jakarta lies at a prime hub location in Southeast Asia, with highly efficient air and sea routes connecting it to regional centers such as Singapore, Kuala Lumpur, Bangkok, and Ho Chi Minh City. It is a “strategic springboard” to ASEAN nations.

For Chinese companies seeking to cover the entire ASEAN market, Jakarta is not only a landing point but also a future regional command center.

2. 270 Million Population Dividend, Booming Market and Talent Pool

Indonesia is the fourth most populous country in the world, with over 270 million people. Greater Jakarta (Jabodetabek) alone has more than 30 million people, mostly young, and with strong consumption growth trends.

This creates three major advantages for Chinese enterprises:

• • Customers are close at hand, shortening the sales conversion chain.
  • A plentiful labor force supports localized operations.
  • The rapid development of e-commerce and O2O service models offers fertile ground for digital business growth.

3. Continuously Improving Business Environment, Transparent and Efficient Setup Process

In recent years, Indonesia has actively reformed its investment environment, introducing the Online Single Submission (OSS) platform, which significantly simplifies company registration and licensing procedures.

Especially in Jakarta and nearby industrial zones (e.g., MM2100, GIIC, Jababeka), Chinese companies enjoy:

• • Greater foreign ownership rights
  • Tax breaks and implementation incentives for certain industries
  • Coordinated government and park-level investment promotion mechanisms that reduce trial-and-error costs

Note: Starting from 2025, certain high-tech industries will enjoy up to 20 years of “super tax holidays”, ideal for sectors such as tech manufacturing, green energy, and digital platforms.

4. High-Level Engagement, Strategic Cooperation Enters a New Stage

In May 2025, Chinese Premier Li Qiang visited Indonesia and met with the new Indonesian President Prabowo in Jakarta. They signed multiple bilateral cooperation agreements covering digital economy, green energy, infrastructure, and financial services.

Premier Li Qiang stated:

“China will encourage more enterprises to invest and do business in Indonesia, pushing China–Indonesia cooperation to deeper and more practical levels.”

5. Clustering of Chinese Enterprises, Forming a Shared Ecosystem

Currently, well-known Chinese enterprises such as Alibaba, ByteDance, Bank of China, CSCEC, and CITIC have established headquarters, representative offices, data centers, or regional hubs in Jakarta.

With the increasing cluster effect of Chinese businesses, a complete “localization support ecosystem” has taken shape:

• • Chinese law firms, accounting firms, banks, and logistics companies are gathered together
  • Communities and associations of Chinese enterprises foster mutual collaboration
  • Channels for sharing talent, resources, and information are mature—saving newcomers significant trial-and-error costs

Conclusion｜Jakarta: The Right Place at the Right Time

From location advantage, market potential, and policy support to ecosystem development, Jakarta is becoming the bridgehead of China’s Southeast Asia HQ strategy.
For enterprises looking to leverage RCEP benefits and seize early ASEAN market opportunities, now is the time to choose Jakarta.

NBK｜The Trusted Local Tax & Compliance Expert for Chinese Enterprises in Indonesia

Setting up a company in Indonesia, ensuring smooth operations, and achieving sustainable growth requires more than just a policy-savvy service provider—it demands a local partner who truly understands the needs of Chinese enterprises.

NBK (Nusantara Tax & Compliance Services) is such a partner. With years of experience in Indonesia, we are dedicated to providing Chinese companies with truly worry-free, professional, and executable one-stop services.

We know Indonesia—and we understand Chinese enterprises.

Our Core Services Cover All Key Steps of “Going Global to Indonesia”:

• Company Setup in Indonesia: Fast registration, compliant processes, adaptable to various ownership structures and business models (PMDN / PMA / special licenses), ensuring legal and stable market entry.
• Tax & Compliance ManagementExpertise in Indonesian tax regulations + Chinese enterprise needs. We handle accounting, tax filing, annual reports, BPJS, financial audits, and more to help avoid tax risks.
• Investment Landing Advisory: Support for feasibility studies, industry compliance reviews, government liaison, and industrial zone selection to help you enter the market efficiently.
• Ongoing Cross-Border Operational Support: Including local employee BPJS management, bank account assistance, ERP integration, bilingual communication support—enabling headquarters in China to manage Indonesia operations effectively.