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The business opportunity of relocating the capital has burst into response to the threat of ground subsidence, imminent inundation by seawater, and many urban development problems. In January 2022, the Indonesian parliament passed a bill approving the relocation of the capital from Jakarta to East Kalimantan Province. The planned area of the new capital Nushantara is 180000 hectares, with an investment of approximately 32 billion US dollars. The demand for building materials and home decoration market will surge.
Indonesia is the largest economy in Southeast Asia, with a long-term growth rate of 5%, and has achieved continuous growth for ten years. To improve the quality of life, environment, and economy of thousands of cities in Indonesia, the Minister of Infrastructure stated that Indonesia will invest 165.5 billion yuan in infrastructure construction. At the meeting, the minister stated that Indonesia will become a "construction site".
Indonesia connects three continents and two oceans, and is an important pivot country for RCEP and a strategic location for expanding Southeast Asian markets. It has a strong foundation in foreign trade with China and its import and export volume is steadily increasing. RCEP has come into effect in Indonesia, and on the basis of the China ASEAN Free Trade Area, it has added zero tariff treatment to over 700 tariff codes of products in China.
Indonesian people have a much higher desire for decoration than Chinese people, and they almost redecorate their interiors every three years. This lifestyle habit has formed a special supply and demand relationship in the Indonesian building materials and home decoration market. Chinese products are very popular in Southeast Asia and have a huge market share. The cost-effectiveness of similar products in China is often higher than that of locally produced products, and their market recognition is extremely high.
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