China Desk

Supporting Chinese Businesses and Investors Across Indonesia and Southeast Asia

Indonesia continues to attract significant investment from Chinese businesses across infrastructure, manufacturing, energy, technology, logistics, and financial services. As DFDL’s member firm in Indonesia, Nusantara DFDL Partnership supports Chinese corporations, investors, financial institutions, and state-owned enterprises on market entry, regulatory compliance, cross-border transactions.

Advising Chinese Businesses and Investors in Indonesia

Investing in Indonesia from China is complex. The rules, business environment, and political landscape all affect how you enter the market, finance projects, and run your operations.

Chinese investors in Indonesia typically face questions across a wide range of areas: how to structure their investment, finance a project, navigate trade rules, manage their workforce, and stay compliant with local regulations. Entering or expanding in the Indonesian market also means dealing with ownership limits, licensing, local content rules (TKDN), and sector-specific requirements.

Chinese businesses commonly operate in Indonesia through Foreign Investment Limited Liability Company (PT PMA) structures, including wholly foreign-owned enterprises and joint venture arrangements, depending on sector-specific ownership requirements and commercial objectives.

As DFDL’s member firm in Indonesia, Nusantara DFDL Partnership supports Chinese corporations, private investors, financial institutions, and state-owned enterprises (SOEs) across the full lifecycle of their Indonesian operations. Through the integrated DFDL Southeast Asia platform, we coordinate multi-jurisdictional matters involving ASEAN investment structures, regional supply chains, and cross-border commercial operations.

Scope of China Desk Services:

Advising on customs regulations, import-export arrangements, logistics operations, distribution structures, and cross-border commercial agreements.

Advising on commercial disputes, regulatory investigations, enforcement matters, anti-monopoly reviews, and cross-border dispute resolution strategies.

Advising on investment structuring, Foreign Investment Limited Liability Company (PT PMA) establishment, licensing requirements, and sector-specific regulatory approvals for entering the Indonesian market.

Supporting mergers, acquisitions, joint ventures, and strategic investments involving Indonesian and regional businesses across multiple sectors.

Advising on infrastructure, energy, manufacturing, mining, and downstream industrial projects, including project structuring, concessions, financing arrangements, and regulatory approvals.

Advising financial institutions, lenders, and corporate borrowers on financing transactions, security arrangements, cross-border financing structures, and capital repatriation considerations.

Advising businesses on ASEAN-China trade frameworks, including ACFTA 3.0 compliance considerations, regional supply chain structuring, customs frameworks, Rules of Origin (ROO), and Local Currency Settlement (LCS) arrangements supporting cross-border trade and investment flows.

Advising on Indonesian operational compliance, employment regulations, expatriate work permits (RPTKA/KITAS), local content requirements (TKDN), and sector-specific legal obligations.

Our Credentials

Our practice regularly supports global investors across a broad range of industries. Recent experience includes:

  • Bank of China with respect to developing their ISDA documentation for Thailand including the finalization of long-form confirmations, and reviewing its Banking Conduct Rules in Thailand, Cambodia, Lao PDR, and Indonesia.
  • China Huadian Engineering with respect to preparation of compliance guidebook for its local subsidiary’s operations in Indonesia.
  • Aeon Delight China in connection with assistance on shareholders agreement for its joint venture with an Indonesian education services company on the establishment of a language, education and skill training centre.
  • A China state-owned heavy truck manufacturer with respect to their intended business activities, which includes trading, manufacturing, operational leasing, after sales services, set-up of foreign investment entities, and the necessary licenses/permits for its operation.
  • China Export & Credit Insurance Corporation (Sinosure) in relation to reviewing the power purchase agreement between PT North Sumatera Hydro Energy and PT Perusahaan Listrik Negara (Persero).
  • Acter Technology Integration Group, a listed company in China, with respect to assistance in conducting due diligence and issuing a legal opinion on all permits, approvals, licenses, and other documents necessary for the day-to-day operation of an electric equipment distribution and importation company.

Key Contact

Jade Hwang

Partner

Jade Hwang advises multinational corporations, institutional investors, and financial institutions on cross-border transactions, foreign investment, and strategic projects across Indonesia and Southeast Asia. She regularly supports Chinese state-owned and private enterprises on market entry, corporate structuring, financing, and regional expansion strategies.

Practice Areas: Corporate & M&A | Investment Funds | Real Estate & Hospitality | Technology, Media & Telecom | Restructuring

SPEAK WITH Jade Hwang

Frequently Asked Questions on Investing in Indonesia

What are the primary vehicle options for Chinese investors entering Indonesia?

Chinese businesses commonly enter the Indonesian market through a Foreign Investment Company (PT PMA) or through joint venture arrangements with local partners, depending on sector-specific foreign ownership restrictions and commercial objectives.

How do Local Currency Settlement (LCS) arrangements support cross-border transactions?

LCS frameworks allow Chinese and Indonesian businesses to settle qualifying trade and investment transactions directly in RMB and IDR, helping reduce foreign exchange conversion costs, manage currency volatility exposure, and improve transaction efficiency.

What are the key operational considerations under ACFTA 3.0?

ACFTA 3.0 developments are expected to strengthen ASEAN-China trade integration through expanded digital trade, supply chain cooperation, and customs alignment. Businesses should evaluate Rules of Origin (ROO), customs documentation requirements, and regional supply chain structures to support compliance and preferential tariff treatment.

How are local content requirements (TKDN) managed in project developments?

Indonesia applies TKDN requirements across sectors including manufacturing, infrastructure, and energy. Businesses should evaluate procurement structures and operational planning early to support regulatory approvals and project execution.

What are the key regulatory considerations for Chinese businesses operating in Indonesia?

Key considerations commonly include licensing requirements, land acquisition, employment regulations, expatriate permits, sector-specific ownership restrictions, and ongoing operational compliance obligations.

How are commercial and investment disputes typically resolved?

Cross-border commercial arrangements commonly utilise arbitration mechanisms such as SIAC or BANI, depending on contractual structures and applicable dispute resolution frameworks.

How does the DFDL network support Chinese businesses across Southeast Asia?

Through the DFDL platform, clients receive coordinated legal support across ASEAN jurisdictions, enabling alignment of investment structures, regulatory strategies, financing arrangements, and cross-border commercial operations.

What should Chinese investors look for in a legal advisor in Indonesia?

Chinese investors typically require integrated support across investment structuring, regulatory compliance, financing, operational execution, and cross-border coordination, alongside experience managing multi-jurisdictional ASEAN matters.