Guide To Joint Ventures In Indonesia

1. Market Conditions

1.1 Geopolitical and Economic Factors

In the past year, Joint Venture (JV) activity in Indonesia has evolved alongside global economic and geopolitical shifts. Inflation, interest rate volatility, the conflicts in Ukraine and the Middle East, and shifting US trade policies have made investors more cautious. Globally, these uncertainties are pushing companies to pursue JVs and strategic alliances as lower-risk alternatives to full acquisitions. Despite this challenging backdrop, Indonesia has seen increasing JV interest, particularly in the electric vehicle (EV) and mineral processing sectors. This is driven by government support for downstream development of critical minerals like nickel, copper and bauxite. Key regulations, including Presidential Regulation No 55 of 2019 as amended by Presidential Regulation No 79 of 2023, provide a roadmap for EV development and local battery production. Indonesia's net-zero emissions target by 2060, along