Huayou Invests US$8.8 Billion in Indonesia, Eyes Additional US$20 Billion
Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has revealed that Chinese company Huayou is not only continuing the integrated electric vehicle battery supply chain ecosystem investment project abandoned by LG Energy Solution, but is also exploring a number of other potential investments in Indonesia.
Rosan said the subsidiary of Zhejiang Huayou Cobalt is pursuing two tracks. "One is continuing the LG project, and the other comprises new projects they have studied and wish to invest in Indonesia, including the development of industrial clusters, such as industrial parks like those in Morowali (Central Sulawesi) or Weda Bay (North Maluku)," Rosan said at a press conference on first-quarter 2025 investment realisation at the Ismail Saleh Building, Ministry of Investment and Downstreaming/BKPM offices in Jakarta on Tuesday (29/4/2025).
Rosan noted that Huayou is currently only a minority shareholder in Weda Bay. The company wishes to develop its own industrial park, planned to be located in Pomalaa, Southeast Sulawesi.
"We also want to develop in other locations. The plan is for Pomalaa. The investment will be substantial, because we know that building an industrial park on the scale of Morowali or Weda Bay certainly requires very significant investment," Rosan added.
Rosan explained that Huayou has long expressed interest in developing the electric vehicle battery supply chain ecosystem in Indonesia, with the government having been in negotiations with Huayou since 2020.
"After LG withdrew, Huayou, which had already invested in Morowali and Weda Bay, expressed interest in replacing LG's position," Rosan said.
The government has held meetings with Huayou's leadership to discuss further investment potential in Indonesia. According to Rosan, Huayou has demonstrated a strong commitment to making additional large-scale investments.
"We met with the owner and chairman of Huayou on Saturday evening. We will continue more detailed discussions in May as a follow-up. The key point is that they are ready to proceed with realising significant investment," Rosan continued.
Rosan explained that the partnership with Huayou will be directed towards supporting Indonesia's electric vehicle battery ecosystem, with an emphasis on the use of cutting-edge technology. He expressed hope that the investment would strengthen the utilisation of local resources, particularly nickel, which is the primary material in EV battery production.
"With Huayou, we naturally want to ensure this investment employs the most up-to-date and best technology. The industry remains the same, but hopefully the technology will be more advanced," Rosan said.
Rosan described Huayou as a strategic partner for Indonesia, noting that the company has invested US$8.8 billion in the country to date.
"They indicated that the potential for future investment from the Huayou group could, by their calculations, reach an additional US$20 billion," Rosan said.
Rosan said the subsidiary of Zhejiang Huayou Cobalt is pursuing two tracks. "One is continuing the LG project, and the other comprises new projects they have studied and wish to invest in Indonesia, including the development of industrial clusters, such as industrial parks like those in Morowali (Central Sulawesi) or Weda Bay (North Maluku)," Rosan said at a press conference on first-quarter 2025 investment realisation at the Ismail Saleh Building, Ministry of Investment and Downstreaming/BKPM offices in Jakarta on Tuesday (29/4/2025).
Rosan noted that Huayou is currently only a minority shareholder in Weda Bay. The company wishes to develop its own industrial park, planned to be located in Pomalaa, Southeast Sulawesi.
"We also want to develop in other locations. The plan is for Pomalaa. The investment will be substantial, because we know that building an industrial park on the scale of Morowali or Weda Bay certainly requires very significant investment," Rosan added.
Rosan explained that Huayou has long expressed interest in developing the electric vehicle battery supply chain ecosystem in Indonesia, with the government having been in negotiations with Huayou since 2020.
"After LG withdrew, Huayou, which had already invested in Morowali and Weda Bay, expressed interest in replacing LG's position," Rosan said.
The government has held meetings with Huayou's leadership to discuss further investment potential in Indonesia. According to Rosan, Huayou has demonstrated a strong commitment to making additional large-scale investments.
"We met with the owner and chairman of Huayou on Saturday evening. We will continue more detailed discussions in May as a follow-up. The key point is that they are ready to proceed with realising significant investment," Rosan continued.
Rosan explained that the partnership with Huayou will be directed towards supporting Indonesia's electric vehicle battery ecosystem, with an emphasis on the use of cutting-edge technology. He expressed hope that the investment would strengthen the utilisation of local resources, particularly nickel, which is the primary material in EV battery production.
"With Huayou, we naturally want to ensure this investment employs the most up-to-date and best technology. The industry remains the same, but hopefully the technology will be more advanced," Rosan said.
Rosan described Huayou as a strategic partner for Indonesia, noting that the company has invested US$8.8 billion in the country to date.
"They indicated that the potential for future investment from the Huayou group could, by their calculations, reach an additional US$20 billion," Rosan said.