China's Top Glass Producer to Invest in Indonesia's Quartz Downstream
TEMPO.CO, Jakarta - Indonesia's Minister of Investment and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, visited the world's largest glass company, Xinyi Group in Wuhu, China. This is a follow up on Xinyi Group's investment plans in the Rempang Eco-City Area in Batam, Riau Archipelago.
Bahlil said that the Indonesian government plans to downstream the quartz industry after it succeeded in nickel downstreaming. Indonesia has a commodity of quartz sand, silica, which has been exported in raw form.
"Building a glass and solar panel factory ecosystem is part of the downstream business in the quartz sand sector," Bahlil said in a statement on Wednesday, July 19.
Xinyi Group CEO Gerry Tung said that one of the factors that encouraged the company to raise its investments in Indonesia is Indonesia's growing economic potentials. Gerry said he has been observing Indonesia for several years, concluding the investment climate to be very good.
"There have been many changes. We have invested in Gresik. Now, as we are seeing a very good development, we are interested to explore other industries, including this one in Batam," Gerry said.
Xinyi Group is a Hong Kong-based multinational company with subsidiaries including Xinyi Glass and Xinyi Solar. It is one of the largest glass producers, with a wide range of glass products used in the automotive, construction and energy sectors.
From 2018 to Q1/2023, China is Indonesia's second biggest source of foreign investment (PMA) with a total of US$24.55 billion. Most of China's investment is in the base metal industry sector with a value of US$8.61 billion.
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