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Indonesia-China joint venture to develop fisheries system in Maluku and Papua

Investment and Downstream Minister/Investment Coordinating Board (BKPM) Head Rosan P. Roeslani revealed that Indonesian and Chinese entrepreneurs will jointly invest capital to build an integrated fisheries system in Maluku and Papua. He reported the commitment for the US$460 million joint venture received from Chinese company Zhuhai Hongwan Ocean Fisheries to President Prabowo Subianto at the State Palace in Jakarta on Jan. 2, 2025.

"The investment came in from the four [Chinese companies] is in the fiberglass, PET (polyethylene terephthalate) resin, solar panel sector, and fisheries sectors to build an integrated system for fisheries in the Maluku and Papua regions through a joint venture between said companies with Indonesian ones," Rosan revealed during a press conference at the Presidential Palace Complex in Jakarta after he met President Prabowo Subianto.

The minister visited China in mid-December 2024 as part of a working visit to attract investment from the country to Indonesia. From his visit, Rosan received an investment commitment worth US$7.46 billion from said four companies. The three other companies committed to investing in Indonesia include the Hongshi Holding Group Co., Ltd (Hongshi Group); China Jushi Co., Ltd (Jushi Group); and Zhejiang Zhink Group Co., Ltd. (Zhink Group) subsidiary Wankai New Materials Co., Ltd.

Hongshi Group will invest for the development of a US$5 billion industrial park that will produce raw materials for solar panels, batteries, and their components, as well as for a 2 gigawatt (GW) capacity coal-fired power plant (CFPP). The investment will be disbursed in multiple stages.

Fiberglass producer Jushi Group is committed to disbursing US$1 billion for the initial stage of its investment. The company said that there was an opportunity for increasing demand for fiberglass as an alternative for roofing, in line with the Indonesian government's program to build more housing. Jushi Group also said that it was interested in investing in other sectors, such as agriculture and new and renewable energy (NRE).

Wankai New Materials has committed to investing US$1 billion in the petrochemical sector, particularly PET resin production. The investment is planned to be disbursed in three stages.

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