China has emerged as Indonesia’s largest trade partner, significantly impacting its economic transformation, particularly in the nickel-processing sector. Under President Jokowi, Indonesia transitioned to become the world’s fourth largest exporter of iron and steel by 2024, with Chinese investments playing a crucial role in this shift. As Jakarta strengthens its downstreaming ambitions, highlighted by the upcoming launch of Asia’s largest EV battery manufacturing hub, it faces the challenge of balancing its growing economic ties with China against the geopolitical rivalries involving the U.S. The need for a strategic recalibration is evident, as Indonesia must diversify its partnerships to navigate the complexities of global power dynamics while ensuring sustainable industrial transformation.