China’s Xinyi to invest $11.5 billion in Indonesia factory -Indonesian minister

JAKARTA : Chinese glass producer, Xinyi Glass Holdings Ltd, has committed to investing $11.5 billion to build a quartz sand processing plant in Indonesia, an Indonesian minister said on Friday.

Minister Bahlil Lahadalia said Xinyi Glass Holdings Ltd signed a memorandum of understanding with the Indonesian government on Friday.

The deal comes after a delegation led by the Indonesian president visited China’s Chengdu this week.

The planned new factory would be built on the island of Rimpang, off Indonesia’s Sumatra island, near neighbouring Singapore, Bahlil said in a video statement.

The $11.5 billion investment would be Xinyi’s second venture in Indonesia following last year’s $700 million investment in East Java, he said.

He said 95 per cent of the output from the quartz sand plant, which is used to make glass, would be exported.

Xinyi did not immediately respond to Reuters’ request seeking comment.

The Indonesian president, commonly known as Jokowi, is in China this week to attend the opening ceremony of the FISU World University Games in Chengdu.

As well as meeting with the CEO’s of several Chinese companies, Jokowi met China’s President Xi Jinping who told him China and Indonesia should ensure the high-standard completion of the Jakarta-Bandung high-speed railway as it nears commercial operation.



Source: Reuters