Indonesia launches two aluminium plants as Weda Bay projects attract $10b

Indonesia has launched the development of two aluminium plants at Weda Bay as part of new industrial projects worth billions of dollars. President Prabowo Subianto announced the projects on Thursday and said the government was committed to protecting investments.

The four projects launched at the industrial park are worth around USD 3 billion. Investment in six other projects is expected to reach around USD 7 billion, Investment Minister Rosan Roeslani said at the event.

Among the companies investing in the projects are PT Weda Bay Aluminium, PT Guang Ching Nickel Cobalt and PT Flatsolar Energy Indonesia, according to the Investment Ministry.

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Aluminium and other industrial projects

The new construction projects include two aluminium plants, facilities for nickel-based battery materials and battery components, and a plant for photovoltaic glass used in solar panels.

Prabowo also launched the first exports of electric vehicle batteries produced by REPT Battero.

He said, “I emphasise here an Indonesian government commitment to respect and safeguard all investments, from wherever.”

The Weda Bay industrial park is partly controlled by Chinese steelmaker Tsingshan Holding Group.

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Indonesia backs investment in metal processing

Indonesia has attracted major investment in metal processing and smelting, particularly from Chinese companies drawn by its nickel reserves.

However, some businesses have raised concerns about recent policy changes. Chinese companies operating in Indonesia have warned that tighter mining quotas, higher taxes and a new pricing formula are increasing costs and threatening investment.

Prabowo said the government would respect and protect investments from all countries.

He further added, “We are committed to safeguarding our partnership as well as possible. It is a matter of honour for the Indonesian people to support our partners.”

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Indonesia has the world's largest nickel ore reserves. It banned exports of raw nickel in 2020 to encourage domestic processing.

The policy helped the country become the world's largest exporter of nickel products, accounting for around 60 per cent of global supply. The export value of nickel products rose from USD 3 billion in 2017 to more than USD 33 billion in 2024.