The recent meetings of Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani with eight Chinese giants in the electric car ecosystem in China on December 18-20, 2024 had resulted in a total new investment commitment of US$7.46 billion (Rp120 trillion).
Geely Auto Group
The meeting at Geely Auto Group’s production facility discussed the potential for investment in the development of the automotive industry in Indonesia.
“We are developing an integrated electric vehicle ecosystem from the refinery, battery industry, and battery recycling,” Geely Auto Group Vice President Song Jun said as quoted in a statement on Monday, December 23, 2024.
Jun revealed that the company is also developing methanol-fueled cars and has begun to be marketed to several countries.
Zhenshi Holding Group Co., Ltd
Zhenshi Holding Group Co., Ltd has invested in several nickel smelting projects, including in North Maluku and Morowali, Central Sulawesi. Zhenshi’s subsidiary, Jushi Group, plans to make a new investment of US$1 billion (first phase) in the fiberglass industry , with an estimated employment of 4,500 people.
“I heard that the Indonesian government under President Prabowo Subianto plans to build 15 million houses. We see this as a good opportunity for us, because fiberglass can be an alternative for roofing,” Chairman of the Board of Zhenshi Holding Group Co. Ltd, Zhang Yuqiang, said.
In the future, he hopes that his investment will not only be in fiberglass, but also in various sectors such as agriculture, manufacturing, and renewable energy.
Wankai New Materials (Zhink Group)
Rosan met with Wankai New Materials, which is part of the Zhink Group, to discuss investment interest in the petrochemical derivative industry sector. The total investment plan reaches US$1 billion ,which will be carried out in three stages.
Zhink Group itself is the 3rd largest PET (Polyethylene Terephthalate) producer in China and the 5th largest in the world.
“For Indonesia, we plan to invest in Cilegon [Banten] by cooperating with other global companies. Our investment will help Indonesia to substitute imports to meet domestic PET needs,” Chairman of Wankai New Materials, Shen Zhigang, said.
Hongshi Holding Group
Rosan held a meeting with Hongshi Holding Group, which plans to develop an industrial area that will produce silicon, polysilicon (raw material for solar panels), batteries and their components, as wel as a 2 gigawatt Steam Power Plant (PLTU).
The construction of this new investment worth US$5 billion will be carried out in stages.
Huayou Holding Group
During a visit to Huayou Holding Group’s headquarters in Quzhou, Rosan had the opportunity to see the production facilities of the integrated battery industry supply chain.
Huayou’s investment development in Indonesia will involve a total of 15 projects and a total of 20,000 employees. Huayou also cooperates with several domestic partners, including Antam, MIND ID, Merdeka Battery Materials and Vale Indonesia.
Currently, Huayou’s project sites are spread across three main locations, namely Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, Indonesia Weda Bay Industrial Park (IWIP) in North Maluku, and Indonesia Pomalaa Industry Park (IPIP) in Southeast Sulawesi. In the future, it will be developed in Sorowako, South Sulawesi and Buli, North Maluku.
Huayou’s total investment in Indonesia has reached US$6.3 billion and integrated smelter mining (HPAL, RKEF), refining and precursors.
“We asked Huayou to build an R&D center in Indonesia and Huayou agreed to do so. In support of Huayou’s commitment, the Indonesian government can tax incentive of 300 percent in the form of Super Tax Deduction,” Rosan said.
CEEC, CITIC and Zhuhai Hongwan Ocean Fisheries
Rosan held one-on-one meetings with three companies in Beijing. The first meeting with China Energy Engineering Corporation (CEEC) discussed potential investment in the new renewable energy (EBT) sector, especially related to the utilization of offshore wind resources in Indonesia. In addition, the company also expressed interest in the green-hydrogen, ammonia, and methanol industry sectors.
The meeting with China’s State-owned investment company CITIC Group discussed the potential for cooperation in several government programs, including supporting the construction of 3 million houses per year, food security through increasing rice and corn productivity, and energy security through revitalizing oil wells.
Rosan’s meeting with Zhuhai Hongwan Ocean Fisheries resulted in the company’s intention to develop the fisheries sector in eastern Indonesia with a total investment of US$460 million.
