Abstrak: Nuansa: Jurnal Penelitian Ilmu Sosial dan Keagamaan Islam Vol. 17 No. 2 Juli -Desember 2020 in various fields of industry. The growth of Chinese foreign investment in Indonesia can be seen by the development of Chinese industrial parks in several regions in Indonesia. This article was prepared by conducting a literature review and accurate data collection sourced from the Indonesia Investment Coordinating Board (IICB) with the objectives to analyze the potentials and challenges that

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... se from Chinese FDI for Indonesia and vice versa. The results obtained from this study are, despite the potential of the Indonesian market share due to the large population, the ease of obtaining raw materials for production and the minimum wage for local workers is relatively low. However, for Chinese investors, it is followed by challenges that also arise, such as high land prices, inadequate Indonesian infrastructure, and different investment regulations in almost every region. For Indonesia, an increase in Chinese FDI encourages employment, provides opportunities for the transfer of technology and knowledge. However, other issues arise, such as competition for local entrepreneurs and concerns about Indonesia's economic dependence on China.Besides, to get a comprehensive understanding of Chinese Industrial parks and their impact, future research with field survey research is highly recommended).