Indonesia says Sojitz Corp to invest $1 billion in West Papua

JAKARTA : Japanese trading house Sojitz Corp plans to invest $1 billion in a methanol project in eastern Indonesia in partnership with a local state fertiliser firm, Indonesia's investment ministry said.

The announcement came after Indonesia's President Joko Widodo met with Prime Minister Fumio Kishida in Tokyo on Wednesday. He also met with 10 Japanese CEOs, including those of Sojitz Corp, Toyota Motor Corp and Mitsubishi Motors Corp, according to the investment ministry.

Earlier this week, Indonesia's government also announced that Japanese carmakers Mitsubishi Toyota Motor Corp and Mitsubishi Motors Corp plan to invest 27.1 trillion rupiah ($1.81 billion) and about 10 trillion rupiah, respectively, in Indonesia's electric vehicles industry.

Investment Minister Bahlil Lahadalia said in a statement the planned investments were "in order to increase the supply chain resilience for Indonesia and Japan in the future".

A feasibility study on Sojitz's joint methanol project with PT Pupuk Indonesia in the eastern province of West Papua is expected to be completed by end of this year, according to the statement.

Sojitz could not immediately be reached for comment.

The statement added that Mitsubishi Chemical Group also plans to invest $156 million through its unit PT MC PET Film Indonesia, but did not provide details.

($1 = 15,010.0000 rupiah)