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Jumat, 20 Desember 2024

Meeting Chinese Companies, Minister Rosan Brings Investment Commitments Worth USD 7.46 Billion

Beijing, December 20, 2024 – During his visit to the People’s Republic of China (PRC), following meetings with major Chinese companies in the electric vehicle ecosystem sector, the Minister of Investment and Downstream Industry/Chairman of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani continues his meetings with 8 companies from December 18-20, 2024. The meetings, held in Hangzhou, Quzhou, and Beijing, have successfully secured a total of USD 7.46 billion or approximately Rp 120 trillion in new investment commitments.

Meeting with Geely Auto Group

The meeting at Geely Auto Group’s production facility discussed potential investments in the automotive industry in Indonesia. Geely is one of the world’s leading automotive manufacturers and a shareholder in several well-known car brands in Europe which includes Volvo, Daimler, and Lotus. In Southeast Asia, Geely is a minority shareholder of Proton.


Currently, Geely has committed to partnering on electric vehicle assembly with Indonesian companies. “We welcome the initiative to develop the automotive industry in Indonesia. We are also developing an integrated electric vehicle ecosystem from refining to battery manufacturing and recycling,” explained Geely Auto Group Vice President Song Jun.


Jun also revealed that the company, which has been operating for over a decade, is developing methanol-fueled vehicles which have begun selling in several countries.


“We see great potential for methanol-fueled vehicles in Indonesia, as Indonesia is the world’s largest producer of palm oil, and we know methanol can be derived from palm oil,” said Minister Rosan.


Meeting with Zhenshi Holding Group Co., Ltd.

Another visited company was Zhenshi Holding Group Co., Ltd, which has invested in several nickel smelting projects in North Maluku and Morowali. Zhenshi’s subsidiary, Jushi Group, is one of the world’s largest fiberglass producers. Jushi Group has planned a new investment in the fiberglass industry, projected to employ 4,500 workers.


“I heard that the Indonesian government under President Prabowo Subianto is planning to build 15 million houses. We see this as an opportunity for us, because fiberglass can become an option for house roofing,” said Zhang Yuqiang, Chairman of the Board of Zhenshi Holding Group Co., Ltd. He further hopes that future investments will not be limited to one sector (fiberglass) but will also include agriculture, manufacturing, renewable energy, and more.


Responding to this, Minister Rosan supported the company’s investment plans in the fiberglass industry and other sectors. “Indonesia, under President Prabowo’s administration, has four priority programs, including downstream processing, food security, and energy security. Of course, we welcome Zhenshi Group’s interest in investing in the agricultural and energy sectors,” Minister Rosan explained.


Meeting with Wankai New Materials (Zhink Group)

Moreover, Minister Rosan met with Wankai New Materials, part of Zhink Group, to discuss investment interest in the petrochemical derivative industry. This investment plan is to be carried out in three phases. Zhink Group is the third-largest PET (Polyethylene Terephthalate) producer in China and the fifth-largest globally.


“For Indonesia, we plan to invest in Cilegon and partner with other global companies. Our investment will help Indonesia substitute imports to meet domestic demand for PET,” said Shen Zhigang, Chairman of Wankai New Materials.


Minister Rosan expressed appreciation and readiness to facilitate the planned investment, including expediting business licensing processes.


Meeting with Hongshi Holding Group

During his work visit, Minister Rosan also met with Hongshi Holding Group who has planned to develop an industrial estate that will produce silicon, polysilicon (solar panel raw material), batteries along with their components, and a 2-gigawatt steam power plant (PLTU). This new investment would be undertaken in phases.


Responding to the company’s interest, Minister Rosan emphasized Indonesia’s significant investment potential in renewable energy, with a total potential exceeding 3,700 gigawatts, 3,000 of which came from solar energy. “We asked global investors to get involved in the renewable energy sector, because that is in line with Indonesia’s target of reaching net-zero emissions in 2060 or sooner,” concluded Rosan.


Meeting with Huayou Holding Group

During a visit to Huayou Holding Group’s headquarters in Quzhou, Minister Rosan had the opportunity to observe integrated battery supply chain production facilities. Huayou’s investments in Indonesia were substantial, with 15 projects and a total workforce of 20,000. Huayou also collaborated with domestic partners, including Antam, MIND ID, Merdeka Battery Materials, and Vale Indonesia.


Currently, Huayou’s projects are located in three main areas: Indonesia Morowali Industrial Park (IMIP), Indonesia Weda Bay Industrial Park (IWIP), and Indonesia Pomalaa Industry Park (IPIP). Future developments have been planned in Sorowako and Buli. Total investment by Huayou in Indonesia has reached USD 6.3 billion, successfully integrating mining, smelters (HPAL, RKEF), refinery and precursors.


“We appreciate Huayou’s ongoing investment in Indonesia. Moving forward, we encourage Huayou to focus more on downstream processing with precursor value added into cathodes and battery recycling,” said Minister Rosan.

Huayou Holding Group Chairman Chen Xuehua expressed support for the government’s downstream program. “We want Huayou in Indonesia to become an investment connecting platforms from the upstream to downstream industries, creating an inclusive industry. We work together to build this industry well,” stated Chen.


The discussion was continued with the research and development (R&D) centers, where, globally, Huayou’s R&D team totaled 5,200 people. Its investment in product development costs reached 8% of total revenue. “We asked Huayou to establish an R&D center in Indonesia, and earlier during the discussion, Huayou agreed to do so. Naturally, this is supported by the government and may be granted a tax reduction incentive of 300% in the form of a Super Tax Deduction,” explained Minister Rosan.


Meeting with CEEC, CITIC, and Zhuhai Hongwan Ocean Fisheries

Concluding his work visit to the PRC, Minister Rosan held one-on-one meetings with three companies in Beijing. The first meeting with China Energy Engineering Corporation (CEEC) discussed the potential for investment in the renewable energy sector (EBT), particularly related to the utilization of offshore wind resources in Indonesia. Additionally, the company also expressed interest in the green hydrogen, ammonia, and methanol industries.

Moreover, the meeting with CITIC discussed the potential for cooperation in several government programs, including supporting the construction of 3 million houses per year, food security through increasing the productivity of rice and corn, and energy security through the revitalization of oil wells. Since its establishment in 1979, CITIC has been an integral part of China's economic development. CITIC's total assets are estimated at USD 1.6 trillion, making it one of the largest state-owned enterprises and conglomerate groups in China.


Lastly, Minister Rosan met with Zhuhai Hongwan Ocean Fisheries, which stated its intention to collaborate with local partners to develop investments in the fisheries sector in eastern Indonesia. This meeting concluded the series of visits by the Minister of Investment and Downstream Industry to the PRC.


For further information, contact:

Ahmad Faisal Suralaga

Head of the Communication and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

Email: humas@bkpm.go.id

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