Foreign Investment Surge: Chinese Companies Acquire Indonesian Firms, Fueling Growth and Raising Questions
Jakarta, Indonesia – A wave of acquisitions by foreign companies, especially from China and Hong Kong, is reshaping Indonesia’s corporate landscape.Driven by overcapacity in their home markets and the desire for access to the burgeoning ASEAN consumer base, these firms are increasingly turning to acquiring publicly listed Indonesian companies (Tbk) as a rapid entry strategy. This trend is not only injecting capital into the Indonesian economy but also raising questions about long-term control and the valuation of Indonesian assets.
A Strategic Play for Expansion
For many Chinese companies,Indonesia represents a crucial hub within the Belt and Road Initiative (BRI),offering a strategic geopolitical position along vital maritime trade routes. Acquiring Indonesian firms provides a global platform, enhances reputation, and facilitates deeper penetration into the wider Southeast Asian market.
“Many issuers in Indonesia are undervalued compared to their business potential,” explains a market analyst. ”Lower stock prices allow foreign companies to acquire assets at relatively cheap prices, than implement efficiency improvements and expansion strategies.”
Two Key Acquisitions Highlight the trend
Recent activity demonstrates the growing appetite for Indonesian assets. Here are two notable examples:
* PT Tourindo Guide Indonesia Tbk (PGJO): This digital tourism marketplace technology platform has seen its share price skyrocket 957.89% this year,reaching Rp1,105 per share as of Thursday,September 18,2025. Chinese firm PT Zhengyu Global Trading (ZGT) completed the acquisition of 493.088.500 shares, equivalent to 61.69% of PGJO’s issued and paid-up capital, through PT Batu investment Indonesia (BIP) on July 31, 2025. ZGT,a large trade company dealing in fuels and metals,is now the controlling shareholder and is obligated to launch a Tender Offer under Indonesian Financial Services Authority (POJZK) regulations.
