Jakarta. Energy Minister Bahlil Lahadalia denied Monday Indonesia’s favoritism towards Chinese investors, but the politician admitted that they liked China for actually walking the talk on nickel investments -- unlike Europe or even the US.

Indonesia is trying to push for commodity refining -- an agenda that has been in full swing since former President Joko “Jokowi” Widodo’s second term. This industrial processing plan starts out with the silvery-white metal nickel but will also expand to other commodities even beyond the mining sector. The government has repeatedly reaffirmed that the country would remain wide open to foreign investors who wish to help Indonesia refine its minerals at home for greater export earnings. Bahlil, too, admitted that this commodity refining plan had caught the attention of many international firms. Despite the enthusiasm, Chinese investors were among the few who actually put their words into action.

“Nickel has become a critical mineral. The US and Europe have asked us to prioritize them in its industrial processing, something we have already done. We [Indonesia] want everyone to like us, so we welcome everyone. … But this [investing] is like a relationship between a man and woman,” Bahlil told the 2025 Energy and Mineral Forum in Jakarta.

Bahlil claimed that European and American investors had left Indonesia hanging. In other words, they have promised to take part in the megaproject but never really put money in the country or built refineries. He added: “China, on the other hand, is like a loyal significant other. … Just like a relationship, of course, we don’t want to hold on to empty promises. … Don’t just send many proposals while not doing much to execute the plan.”

A major part of the nickel processing is the establishment of an electric vehicle (EV) ecosystem. Nickel is a mainstay ingredient in EV battery production. Indonesia has stopped selling unprocessed nickel ores overseas since 2020. Data showed that Indonesia exported $33.9 billion worth of nickel derivative products in 2024, marking an over tenfold increase compared to the $3.3 billion export made in 2017.

Official government figures showed that China was never missing from the top 3 list of Indonesia’s sources of foreign direct investments. In Q1 2025, China placed third by investing $1.8 billion in Indonesia, just behind Hong Kong ($2.2 billion). China was also the third when it comes to investments, specifically in the commodity refining sector. The country put in about $1 billion to help Indonesia’s industrial processing agenda in January-March 2025. Hong Kong invested $1.5 billion in the same sector over the said three-month period. 

Just a few days ago, Bahlil told reporters that Chinese battery maker CATL would break ground on its EV battery project next month. CATL’s sub-subsidiary CBL has partnered with local firm Indonesia Battery Corporation (IBC).

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