Powering China-ASEAN Growth: Deutsche Bank Bridges Chinese Companies’ Strategic Expansion in Indonesia

21 Apr 2025

International Cooperation
Partner News

Amid shifting global supply chains and renewed trade tensions, Chinese companies are accelerating their expansion into Southeast Asia. Indonesia, with its large domestic market, improving investment climate, growing infrastructure needs, and strategic position within ASEAN, has emerged as a key destination – offering an attractive alternative for growth in the face of rising tariffs and trade headwinds.

 

To support Chinese clients navigating this dynamic and evolving market, Deutsche Bank hosted its first Chinese client event in Indonesia. The session brought together experts across financing, risk management, and treasury solutions to address practical challenges, provide insights into the latest regulatory developments, and showcase how the Bank’s cross-border capabilities help clients manage complexity, mitigate risks and grow with greater certainty across the region. Guest speaker Mr Cahyo Purnomo from the Indonesia Investment Promotion Centre also joined the session to share the latest investment policies, sectoral opportunities, and government initiatives for attracting FDI.

 

Leo Yin, President of DB China, said: “This client event marked a milestone in Deutsche Bank’s ongoing efforts to support Chinese enterprises in Southeast Asia, reinforcing its role as a practical and experienced partner for cross-border business. We are dedicated to supporting our Chinese clients on their overseas expansion journey, especially in a key market like Indonesia where long-term economic ties with China are deepening.”

 

Siantoro Goeyardi, Chief Country Officer of Indonesia, added: “DB Indonesia offers the full suite of corporate and investment banking solutions to support our multinational clients, including Chinese clients, in their growth plans in Indonesia. We have a strong understanding of the local market and we also work closely with Indonesian corporates who partner with companies investing into the country. The dual perspective enables us to connect the dots and deliver integrated solutions.”

 

What are the most interesting questions from the participating corporates when they enter the Indonesian market? 

  • What are the main challenges Chinese companies face from a financing perspective?
  • How to manage the FX risks in Indonesia?
  • What challenges do companies face with cash management in Indonesia?

 

Chinese companies expanding into Indonesia often encounter a distinct set of financing challenges. These include high local interest rates for loans in Indonesian Rupiah (IDR) and limitations around risk mitigation techniques or tools that are available locally. Deutsche Bank supports corporates client in navigating Indonesia’s regulatory landscape by structuring cost-competitive financing solutions through its international network and structured finance capabilities. The bank offers a comprehensive range of debt products from short-term trade finance, working capital loans, and supply chain finance solutions, to long term corporate financing provided locally and via cross border channels from hub locations such as Singapore or China.

 

Managing FX and Rates risk in Indonesia requires both technical expertise and local insight. Deutsche Bank supports Chinese corporates with tailored risk management strategies and is a strong advocate of RMB internationalization. To reduce currency exposure, Deutsche Bank facilitates direct IDR-RMB conversions, helping clients avoid additional costs and risks tied to USD cross-conversion. Deutsche Bank is in the leading position to manage rates risk on the back of large and long tenor financing transaction. Notably, the Bank coordinated one of the longest interest rate swap deals in the market—USD 1.5 billion 13-year transaction for a major infrastructure project. 

 

Deutsche Bank also advises more risk management to be booked locally in Indonesia with the local entity, to better manage the cashflow and satisfy the accounting requirement. With a strong local presence in Jakarta, the team provides timely regulatory guidance—such as helping clients adapt to the latest requirement to retain export proceeds in Indonesia for one year—ensuring clients stay compliant while managing FX risks effectively. 

 

Managing cash efficiently in Indonesia can be challenging for Chinese companies, with many participants polling inefficient processes being the biggest challenge in treasury operations today. These stem from having multiple banks and different processes (not standardised), not implementing systematic solutions (not automated), which also results in disbursed liquidity and reduced visibility (not centralised) exacerbating the inefficiencies. 

 

With 56 years of experience in Indonesia, Deutsche Bank helps bridge these gaps through our direct clearing and automated solutions, and also access to a strong partner bank network to provide last-mile solutions such as cash delivery and deposits. To address liquidity challenges, Deutsche Bank also provides cross-bank, cross-entity, cross-country and cross-currency solutions on an automated platform.

 

Kenny Khoo, Head of Intra-Asia & MEA Corridor Coverage, said: “As China-ASEAN economic ties continue to deepen, Deutsche Bank stands ready to support Chinese enterprises with the insight, expertise and tailored solutions they need to thrive in Indonesia and across the region, particularly for complex structures, international projects, and joint ventures, helping turn cross-border complexity into opportunity.”

 

Find out more about how Deutsche Bank is connecting Asia Pacific with the world: https://db.com/apac