Huayou seeks to develop industrial park in Southeast Sulawesi

Investment and Downstream Minister/Investment Coordinating Board (BKPM) Head Rosan Roeslani stated that Huayou Indonesia is continuing the integrated electric vehicle (EV) battery supply chain ecosystem investment project abandoned by LG Energy Solution. Rosan said that the subsidiary of Zhejiang Huayou Cobalt Co., Ltd, is also exploring potential investments in the country.

"There are two. One is continuing LG, the other is a new project that they have studied and want to invest in Indonesia, including the development of industrial clusters such as industrial parks in Morowali (in Central Sulawesi Province) or Weda Bay (in North Maluku Province)," said Rosan during a press conference on Indonesia's investment realization achievement the first quarter (Q1) of 2025 at the Office of the Investment and Downstream Ministry/BKPM in Jakarta Special Capital Region (DKI) on Apr. 29, 2025.

Rosan said that Huayou is currently only a minority shareholder in Weda Bay, adding that the company wants to develop its own industrial park which is planned to be located in Pomalaa Regency, Southeast Sulawesi.

"We also want to develop in other places too. The plan is to locate it in Pomala. So the investment is large, because we know that building an industrial park like Morowali, Weda Bay, are of course very, very large investments," he elaborated.

Rosan explained that Huayou has shown interest in working on an EV battery supply chain ecosystem project in Indonesia, with the company negotiating with the Indonesian government since 2020.

"Then after LG withdrew, Huayou, which had invested in Morowali and Weda Bay, is interested in replacing LG," he said.

Rosan said that the government had met with Huayou's leadership to discuss the potential for further investment in Indonesia, and Huayou has shown a strong commitment to investing additionally on a large scale in Indonesia.

"We have met with the owner and chairman of Huayou on Saturday night (Apr. 26, 2025). We will continue the discussion in more detail in May to follow up. The point is they are ready to come in to realize a large investment," he continued.

Rosan explained that the cooperation with Huayou will be directed to support the EV battery ecosystem in Indonesia, with an emphasis on the use of cutting-edge technology. He hopes that the investment can help optimize the use of local resources, especially nickel as the main ingredient in EV battery production.

"With Huayou, of course, we also want to ensure that this investment uses the best and most up-to-date technology. So, our hope is for the industry to remain largely the same, but with more advanced technology," he divulged.

Rosan said that Huayou is a strategic partner for Indonesia, having invested US$8.8 billion in the country.

"They conveyed the potential for investment from Huayou group could reach an additional US$20 billion in the future according to their calculations," said Rosan.