Industries

China Jushi Co Ltd, member of China National Building Material (CNBM), one of the largest construction material producers in the world, has committed to invest US$1 billion in Indonesia to build a fiberglass factory. 

Indonesia is among the world’s major importers of plastics and organic chemicals, among others due to poor structure of the domestic industry. In the first eleven months of 2024, import of plastics and articles from plastics reached US$9.7 billion, an increase of 12.1% from the corresponding period last year. 

MNC Land (KPIG) has sold its assets worth Rp5.5 trillion in Bali Island to PT Bumi Indah Permai (BIP), the main investor of Bali Urban Subway. The transaction, which aims to fund the Bali Subway project, is targeted to be completed by January 2025. Later, BIP will use the assets for the construction of the Bali Urban Rail and Associated Development (Bali Subway) project.

Eastroc Beverage, Chinese energy and electrolyte drink manufacturer plans to invest up to US$200 million to build a factory in Indonesia in order to meet growing demand for high-standard soft drinks among consumers in Southeast Asian countries.

PT Mineral Industri Indonesia (MIND ID), parent of Aneka Tambang (ANTM), Bukit Asam (PTBA), PT Timah Tbk (TINS), and PT Freeport Indonesia (PTFI), plans to allocate Rp20.6 trillion of investment in five projects for 2025, including smelter grade alumina refinery (SGAR) in Mempawah, aluminum smelter in Kuala Tanjung, nickel project in East Halmahera, copper smelter in Gresik, and coal infrastructure project in Tanjung Enim.

Talking about energy transition, the International Renewable Energy Agency shows that Indonesia had around 574 MW of installed PV capacity at the end of 2023. Nothing compared to the added 160 GW in China in the first nine months of 2024 alone.

Since the downfall of Soeharto in 1998, Indonesian leaders talked about the country’s intention to grow methanol industry, using its vast resources of natural gas and coal. Unfortunately, we haven’t seen any new methanol company established other than one existing producer in East Kalimantan province.

Free meal for schoolchildren is the single largest project in Indonesia under Prabowo administration. It will start next year with a modest Rp71 trillion budget, but with ‘funding commitment’ from China, the government might scale up the program faster than planned. 

Budi Arie Setiadi, minister of cooperatives, blamed free trade agreements with Australia behind the difficulties of local dairy farmers to compete. The Indonesia-Australia free trade (IA-CEPA) was signed on March 4, 2019 by Jokowi’s cabinet. Budi Arie, leader of Pro-Jokowi (Projo) volunteers group, should have known that.