Tempo are reporting that the world’s largest glass company, China’s Xinyi Group, are raising their investments in Indonesia with plans to develop a glass and solar panel facility in the Rempang Eco-City Area in Batam.
Bahlil Lahadalia, Indonesia’s Minister of Investment and head of the Investment Coordinating Board (BKPM), visited the Xinyi Group in Wuhu, China, saying 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, say Tempo.
“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, report Tempo. 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.
Tempo report that 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 USD 24.55-billion. Most of China’s investment is in the base metal industry sector with a value of USD 8.61-billion.