Foreign Investment Surge: โChinese Companies Acquire Indonesian Firms, Fueling โGrowth and Raising Questions
Jakarta, Indonesia – A wave of acquisitions byโข foreign companies, especially from China and Hong Kong, isโ reshapingโ Indonesia’s corporate landscape.Driven by โovercapacity in โขtheirโ home markets and the desire for access to the burgeoning โASEAN consumer base, these firms are increasingly turning to acquiring publicly listedโ Indonesian companies (Tbk) as a rapid entry strategy. This trend is not only injecting capital into the Indonesian โeconomy but also raising questions about long-termโ control and the valuation of Indonesian assets.
A Strategic Play for Expansion
For many โChinese companies,Indonesia represents a crucial hub within the Belt and Road Initiativeโค (BRI),offering a strategic geopolitical โposition along vital maritime โtrade routes. โAcquiring Indonesian firms provides a global platform, enhances reputation, and facilitates deeper penetration into the wider Southeast Asianโ market. โ
“Many issuers in Indonesia โare undervalued compared โฃto their business potential,” explains a โฃmarket analyst. โ”Lower โstock prices allow foreign companies to acquire assets at relativelyโค cheap prices, than implement efficiency improvements and expansion strategies.”
Two Key Acquisitions Highlight the trend
Recent activity demonstrates the โฃgrowing appetite for Indonesian assets. Here are two notable examples:
* PT Tourindo Guide Indonesia Tbk (PGJO): โ โ This digital tourism โขmarketplace technology platform has โseen itsโ share price skyrocketโ 957.89% this year,reaching Rp1,105 per share as of Thursday,September 18,2025. โ Chinese firm PT Zhengyu Global Trading (ZGT) completedโฃ the acquisition of 493.088.500 shares,โฃ equivalent to 61.69% of PGJO’s issued and paid-up capital, throughโฃ PTโข Batu investment Indonesia (BIP) on โขJuly 31, 2025. โโ ZGT,a large trade company dealing โin fuels and metals,is now the controllingโค shareholder and is obligated โฃto launch a Tender โOffer under Indonesian Financial โขServices Authority โข(POJZK) regulations.