Jakarta. Chinese polyethylene terephthalate or PET plastic manufacturer Wankai New Materials has pledged to establish a factory in Banten’s industrial city of Cilegon.

Investment Minister Rosan Roeslani not long ago flew to China to engage in talks with companies who are looking to set up their production in Indonesia. The minister had brought home $7.46 billion in investment commitments from four Chinese companies. Wankai New Materials, which claimed to be one of China’s leading bottle-grade PET resin manufacturers, was among those who showed interest. 

“I have just reported back to President [Prabowo Subianto] on the $7.46 billion commitments from four Chinese companies … one is an investment related to a PET resin project,” Rosan told reporters, shortly after his meeting with Prabowo at the State Palace in Jakarta on Thursday.

Wankai New Materials is a subsidiary of the Chinese petrochemical producer Zhink Group. 

A ministerial press statement detailing Rosan’s China visit wrote that the minister had met with Wankai New Materials’ chairman Shen Zhigang. The latter had told Rosan that the company hoped that its investment could help Indonesia cut down its PET imports. Wankai New Materials’ investment is set to take place in three phases. 

Wankai New Materials would partner with petrochemical maker Ineos Aromatics Indonesia on the project, according to a separate ministerial announcement. They have also picked Cilegon’s Krakatau Industrial Estate for the location of the factory. This PET resin facility is set to boast an annual production capacity of 750,000 tons. Wankai New Materials is planning to make an initial investment of $300 million.

The business deal is expected to further cement China’s position as one of Indonesia’s biggest sources of foreign direct investment (FDI). Government data showed China had invested about $5.6 billion in Indonesia in the first 9 months of 2024, ranking third after Singapore (almost $14.4 billion) and Hong Kong (nearly $6.1 billion).