China to build a stainless steel plant in Indonesia

Two Chinese firms have pledged to invest $ 1.630 billion in Indonesia. The investment will be directed to the construction of a stainless steel plant and power plant in Morowali industrial zone, Central Sulawesi as part of joint venture projects to support the development of industrial zones outside Java.

The projects will provide a big boost to infrastructure development in eastern Indonesia by reducing the need for steel imports. In 2016, the country imported over 50% of its steel consumption.

Memoranda of Understanding were signed on the sidelines of the Sino-Indonesian Cooperation Forum in Beijing. The announcement of a fresh investment in Indonesia was discussed at a bilateral meeting between Indonesian President Joko Widodo and China's Xi Jinping.