Chinese Investor Plans EV and Buton Asphalt Plants in Java
Investment and Downstreaming Minister and Head of the Investment Coordinating Board (BKPM) Rosan P. Roeslani met with several company executives in Shanghai, China, on 22–23 October 2026.
During the meetings, Rosan explored investment in four strategic sectors: downstream processing of Buton asphalt, textiles, energy, and automotive and electric vehicles.
“We want to turn investment cooperation opportunities into concrete implementation plans, covering production capacity and technology, domestic industrial development, and commercial follow-up with relevant stakeholders and Danantara Indonesia,” Rosan said in a written statement received by the newsroom in Jakarta on Wednesday, 28 October 2026.
The four areas under investment discussion are:
1. Buton asphalt downstream processing
Xi’an Zhongli Asphalt Co., Ltd. outlined plans to invest US$60 million (Rp1.09 trillion) in a Buton asphalt-based plant on Java, with an annual capacity of 600,000 tonnes.
The investment would be carried out in stages until the plant reaches full capacity. The facility is intended to reduce imports of petroleum asphalt while creating export opportunities.
2. Strengthening the textile industry and implementing the IEU-CEPA
Rosan also met Sweden’s H&M Group and nine of its supply-chain partners from China and Hong Kong, which are investing in nine new factories in Java. The projects cover yarn dyeing, weaving, knitting, textile finishing and garment production.
H&M said it was ready to serve as a pilot for implementation of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) for European fashion brands. Its supply-chain partners also raised their need for easier licensing and access to green energy, which will be followed up with the relevant agencies.
3. Waste-to-energy programme and 100 GW solar power
Weiming Environment Protection, a partner in the waste-to-energy power plant projects in Greater Denpasar, Bali, and Greater Bogor, reported that most of the civil construction work on both projects had been completed.
The projects have entered the equipment installation stage and are targeted to begin operating in 2027.
Weiming is also building a waste-to-energy equipment factory in Cilegon, Banten, which is expected to start production in 2027 to strengthen local content in the programme. The company also expressed interest in investing 1 gigawatt (GW) in the 100 GW solar power programme.
Rosan also met Tsingshan Group Chairman Xiang Guangda to discuss follow-up to the company’s investments in Indonesia, including development of the Indonesia Weda Bay Industrial Park (IWIP) in North Maluku.
4. Automotive and electric vehicle industry
Rosan and Geely Auto Group discussed opportunities to cooperate on developing Indonesia’s automotive industry and electric vehicle ecosystem.
He said his ministry would follow up all the proposals with the companies and relevant ministries and agencies so they could be implemented promptly.
The cooperation is expected to expand national industrial capacity, strengthen domestic supply chains, reduce reliance on imports, create jobs and broaden Indonesia’s export markets.