According to Investment Minister Bahlil Lahadalia, Chinese glass giant Xinyi Group seeks an $11 billion investment in the downstream quartz sand industry at Lumpang Eco-City in Batam, Riau Islands.
Bahlil flew to China earlier this week to meet with potential investors, including Xinyi Group, which makes automotive glass and solar panels.
I think Xinyi is one of the world's leading industrial enterprises. God willing, they will invest in Lembong, "Bahlil said in a press statement on Wednesday.".
During the visit, the minister tried to show that Indonesia intends to extract more added value from its commodities by processing raw materials domestically. The downstream industry for nickel is already developing, and the resource-rich country is now trying to expand it to other commodities.
We have quartz sand and silica. But all this time, we've been exporting them in raw form. "The development of glass and solar panel ecosystems is part of our efforts to promote downstream industries in the quartz sand industry," Bahlil said.
Xinyi Group includes Xinyi Glass and Xinyi Solar. Gerry Tung, CEO of Xinyi Group, said that Indonesia's improved climate investment and strong economic potential have prompted the company to increase its investment in Indonesia. Xinyi has now invested in a production plant in the Gyip Industrial Park in Gresik.
"In the past few years, we have seen how good the investment (environment) in Indonesia is.". A lot has changed. We have invested in Gresik and seeing its growth has prompted us to move to other sectors, including Batam, "said Gerry.".
Last year, Xinyi Glass signed an agreement with JIIPE developer BMKS to buy a large plot of land in the industrial park. The Chinese glassmaker also signed an agreement with BMKS to install water and electricity to support the construction and operation of its plant. China is the second largest foreign investor in Indonesia, with cumulative investments totaling $24.55 billion from 2018 to Q1-2023, the
government report said.
China mainly invested in Central Sulawesi (US $6.88 billion), West Java (US $5.21 billion), North Maluku (US $3.83 billion), Jakarta (US $1.74 billion) and Banten (US $1.45 billion).
Chinese investment also went primarily to base metals ( $8.61 billion); transportation, storage and telecommunications ( $6.69 billion); and electricity, gas and water ( $2.75 billion). This was followed by real estate, industrial parks and office buildings ( $1.74 billion) and the chemical industry ( $1.95 billion). A government roadmap published by the Ministry of
Investment earlier this year shows that China will prioritize the downstream development of 21 commodities such as coal, bauxite, salt and seaweed in the coming decades. However, developing downstream industries for all these commodities will require $545.3 billion in investment by 2040.
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