Indonesia Launches Two Aluminium Plants at Weda Bay Amid $10 Billion Industrial Investment Drive
Meta Description: Indonesia has broken ground on two aluminium smelters at the Weda Bay industrial park as part of a $10 billion wave of industrial investment. Backed by Chinese capital including Tsingshan, the complex also includes nickel battery materials and solar glass projects.
Indonesia has officially launched development of two aluminium production plants at the Weda Bay industrial park, as part of a broader $10 billion pipeline of new industrial projects. President Prabowo Subianto announced the projects on Thursday, reaffirming the government’s commitment to protecting domestic and foreign investment.
Project Scale & Industrial Layout
The four projects inaugurated at the industrial park carry a combined value of around $3 billion. A further six projects in the pipeline are expected to attract roughly $7 billion in total investment, according to Investment Minister Rosan Roeslani.
The new facilities include two aluminium plants, nickel-based battery material and component production lines, and a photovoltaic glass plant for solar panels. Prabowo also marked the first exports of electric vehicle batteries produced by local manufacturer REPT Battero at the launch event.
Key investors in the Weda Bay projects include PT Weda Bay Aluminium, PT Guang Ching Nickel Cobalt and PT Flatsolar Energy Indonesia. The industrial park is partially controlled by Chinese steel and metals giant Tsingshan Holding Group.
Indonesia’s Downstream Metal Processing Strategy
Indonesia has emerged as a global hub for metal processing and smelting, driven largely by Chinese investment drawn to its world-leading nickel ore reserves.
The country banned raw nickel exports in 2020 to force domestic downstream processing. The policy has turned Indonesia into the world’s largest exporter of nickel products, accounting for roughly 60% of global supply. The export value of nickel products surged from $3 billion in 2017 to more than $33 billion in 2024.
Policy Concerns & Government Assurances
Despite strong investment inflows, some operators have raised concerns over recent policy shifts. Chinese companies active in Indonesia have warned that tighter mining quotas, higher taxes and a new pricing formula are raising operational costs and threatening future investment.
Addressing these concerns, Prabowo stated the Indonesian government would respect and protect investments from all countries. “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,” he said.
