February 26, 2024
JAKARTA – Coordinating Maritime Affairs and Investment Minister Luhut Binsar Pandjaitan said on Thursday that China had expressed interest in investing in the downstream nickel industry in Indonesia, namely with a cutlery factory.
“[China] has expressed its interest in joining us for stainless steel downstreaming [production] into forks, spoons, syringe needles and other products,” Luhut said on his Instagram account.
“And we will set up a dedicated area for this [factory].”
Additionally, Luhut said China would go ahead with its planned investment in a major petrochemical project in North Kalimantan. He expressed hope for a smooth investment process without any unforeseen obstacles.
“I am pleased that despite the recent global economic downturn, China has still confirmed that the petrochemical project will go on,” he said.
Luhut also said there was a plan to establish a special industrial zone to help micro, small and medium enterprises (MSMEs) in North Kalimantan contribute to the development of the region’s petrochemical industry.
He acknowledged that potential investors had been cautious about investing in Indonesian state projects. He attributed this hesitancy to the uncertainty surrounding the election.
Nonetheless, Luhut remained optimistic about achieving the ambitious investment target of Rp 1,650 trillion (US$105.87 million) set by President Joko “Jokowi” Widodo for 2024.
The target surpasses the realized investment of Rp 1,418 trillion in 2023.
Indonesia has an existing domestic cutlery businesses, including PT Logam Bima in Bandung and PT Naga Komodo in North Jakarta.
Both companies produce a wide array of cooking utensils made of stainless steel.
PT Oneject Indonesia, meanwhile, produces single-use syringes and hypodermic needles.
It is unclear whether domestic players such as these will be asked to participate in the Chinese factory project.