Sunday, December 22, 2024

Indonesia seeks China Jushi’s collaboration in building a fiberglass factory

Reading Time: 2 minutes
Audina Nur

Journalist

Mahinda Arkyasa

Editor

Interview

Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan extended an invitation to Chinese fiberglass giant Jushi Co Ltd to make strategic investments in Indonesia. Jushi is one of the world’s leading fiberglass producers with a global sales and service network.

“The high global demand for fiberglass finally motivated me to urge them to open a factory in Indonesia,” Luhut said on Tuesday (23/5).

Luhut emphasized that the establishment of a fiberglass factory in Indonesia can strongly support the downstream industry program that Presiden Joko Widodo is actively promoting.

Moreover, Luhut highlighted Indonesia’s plentiful reserves of silica sand, the primary raw material used in the fiberglass industry.

“Therefore, silica sand will not only be mined and exported raw but will conceive tens of thousands of derivative industries that will increase added value.” Luhut added.

Indonesia’s silica sand reserves

Based on the 2021 data from the Ministry of Energy and Mineral Resources, Indonesia possesses an immense potential for silica sand resources, estimated at 25 billion tons, with reserves currently standing at 330 million tons. These abundant resources are spread across 23 provinces. However, Indonesia’s silica sand production remains comparatively low in relation to other countries. One of the contributing factors to this situation is that Indonesia still lacks investors willing to participate in the upstream sector, particularly in silica sand mining and processing.

Chinese glass companies’ eye in Indonesia

The news surrounding the China glass company’s expansion into Indonesia has been circulating since 2022. At that time, the Ministry of Investment announced that two Chinese firms had presented investment proposals to process silica sand in Indonesia into glass and other products.

Among these companies is Xinyi Solar Energy, a subsidiary of Xinyi Glass Holding, which specializes in solar panels and plans to invest a substantial amount of up to US$3 billion to secure the supply of silica sand in Bangka Belitung. Xinyi Holding, known for its diverse range of glass products, also seeks to secure land for establishing a production hub in Southeast Asia.

After Xinyi, the spotlight shifted to Jushi as the company visited in 2022 to survey and research the possibility of establishing a factory in Indonesia. Jushi seeks Indonesia as a crucial source of silica sand and a hub for establishing distribution networks that can serve Southeast Asian countries to Australia.

Jushi, through its subsidiaries, already has factories in China, the US, and even Egypt. 

Audina Nur

Journalist

Mahinda Arkyasa

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The Indonesian Defense University, in collaboration with German pumps and pump systems manufacturer Wilo, held a guest lecture themed “Pump Systems Working Principles and Practical Applications” on Wednesday, December 18, 2024.
The Tanzanian government delegation met with the Ministry of Energy and Mineral Resources (ESDM) to discuss Pertamina’s investment plan in Tanzania and learn about processing Liquefied Natural Gas (LNG) with Indonesia.
Indonesia and Norway have launched the fourth phase of their result-based contribution (RBC) partnership, committing US$60 million (Rp952 billion) based on emission reductions achieved during the 2019-2020 period.
Minister of Investment and Downstream/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani emphasizes that Indonesia has great potentials and is the right business partner for multinational companies, in particular European ones.
Nvidia, a technology company from the United States, has set up an artificial intelligence (AI) research and development center and data center in Vietnam following an agreement signed on Thursday, December 5, 2024 in Hanoi, attended by Nvidia CEO Jensen Huang and Vietnamese Prime Minister Pham Minh Chinh.
The 19th Senior Officials Meeting of the Coral Triangle Initiative on Coral Reefs, Fisheries, and Food Security (CTI-CFF) that was held in Dili, Timor Leste on Monday-Friday, December 2-6, 2024 have resulted in several conservation targets aimed at addressing overfishing, climate change, and pollution.