China's Huayou to Invest Additional US$20 Billion in Indonesia
JAKARTA — Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani has announced that Chinese company Huayou plans to invest US$20 billion (approximately Rp 336 trillion at an assumed exchange rate of Rp 16,800) in Indonesia. The investment will be used in part to fund the development of electric vehicle (EV) batteries.
Rosan added that the US$20 billion investment would be in addition to Huayou's previously realised investment of US$8.8 billion.
"Huayou's investment in Indonesia as of today has already reached US$8.8 billion. They have already invested, it's already completed. Now, they have indicated the potential for additional investment from the Huayou group, which according to their calculations could reach US$20 billion going forward," Rosan said at the Ministry of Investment office on Tuesday (29 April 2025).
"There are two areas the US$20 billion will finance — one is continuing the LG EV battery project, and the other is a new project they have studied and wish to invest in Indonesia," he said.
This includes the development of an industrial park in Pomalaa, Southeast Sulawesi. Rosan said Huayou intends to build an industrial cluster similar to those in Weda Bay and Morowali.
"So why could the investment become so large? Well, if we know that building an industrial park on the scale of Morowali or Weda Bay, the investment is naturally very substantial," Rosan said.
He added that the additional investment plans would be discussed in greater detail in May.
Previously, a consortium of South Korean companies had decided to withdraw an investment project worth US$7.7 billion (approximately Rp 129.8 trillion at an assumed exchange rate of Rp 16,862 per US dollar) from EV battery development in Indonesia. The consortium comprised LG Energy Solution, LG Chem, LX International Corp, and other partners.
Sources from South Korean industry circles indicated that the consortium had decided to withdraw the investment project after consulting with the Indonesian government, citing a shift in the industry landscape, particularly due to a temporary slowdown in global electric vehicle demand.
Rosan added that the US$20 billion investment would be in addition to Huayou's previously realised investment of US$8.8 billion.
"Huayou's investment in Indonesia as of today has already reached US$8.8 billion. They have already invested, it's already completed. Now, they have indicated the potential for additional investment from the Huayou group, which according to their calculations could reach US$20 billion going forward," Rosan said at the Ministry of Investment office on Tuesday (29 April 2025).
"There are two areas the US$20 billion will finance — one is continuing the LG EV battery project, and the other is a new project they have studied and wish to invest in Indonesia," he said.
This includes the development of an industrial park in Pomalaa, Southeast Sulawesi. Rosan said Huayou intends to build an industrial cluster similar to those in Weda Bay and Morowali.
"So why could the investment become so large? Well, if we know that building an industrial park on the scale of Morowali or Weda Bay, the investment is naturally very substantial," Rosan said.
He added that the additional investment plans would be discussed in greater detail in May.
Previously, a consortium of South Korean companies had decided to withdraw an investment project worth US$7.7 billion (approximately Rp 129.8 trillion at an assumed exchange rate of Rp 16,862 per US dollar) from EV battery development in Indonesia. The consortium comprised LG Energy Solution, LG Chem, LX International Corp, and other partners.
Sources from South Korean industry circles indicated that the consortium had decided to withdraw the investment project after consulting with the Indonesian government, citing a shift in the industry landscape, particularly due to a temporary slowdown in global electric vehicle demand.