GRESIK, November 25, 2024 – The Ministry of Investment and Downstreaming/BKPM continues to focus on promoting sustainable economic growth. Investment growth, particularly in downstream sectors, is being prioritized as a key pillar to maximize economic expansion. This aligns with President Prabowo Subianto's "Asta Cita," which places downstream as a strategic priority to drive sustainable economic development.
In this context, MIND ID subsidiary PT TIMAH Tbk (IDX: TINS) and PT Xinyi Glass Indonesia have entered into a strategic collaboration, formalized through the signing of a Memorandum of Understanding (MoU). The signing was conducted by PT TIMAH Tbk's Director of Business Development, Dicky Octa Zahriadi, and PT Xinyi Glass Indonesia’s Director, Jia Ao.
PT Xinyi Glass Indonesia, a leading glass manufacturing company established in 1988 and headquartered in Hong Kong, operates across more than 140 countries. In Indonesia, the company has established a production facility within the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone in Gresik, inaugurated in August 2022. This investment ranks among the largest foreign investments in Indonesia’s glass manufacturing sector.
This MoU signifies a major step towards optimizing the development of Indonesia’s glass industry, particularly through the provision of tin as a raw material. Tin will play a vital role in enhancing the quality of high-tech glass production carried out by PT Xinyi Glass Indonesia.
Both parties emphasized the importance of sustaining this collaboration through detailed discussions and mutual agreements on scope, compensation, and technical measures required for the long-term realization of the initiative.
In his speech, PT TIMAH Tbk's Director of Business Development, Dicky Octa Zahriadi, stated that the MoU aligns with the government’s vision of maximizing investment growth, particularly in supporting downstream industries.
“This partnership supports the government’s efforts to continue enhancing investment growth, especially downstream. We recognize the positive results reported in the Ministry of Investment and BKPM's Q3 report, which need ongoing support, particularly in the mining and chemical industry collaboration,” Dicky explained.
He further expressed optimism that this collaboration would strengthen a more independent and sustainable domestic downstream industry ecosystem, optimize local natural resources, and create opportunities for domestic products.
“With government policies consistently driving the development of a robust domestic industrial ecosystem, we are confident that Indonesia will continue to record significant growth in investments, including boosting domestic absorption to strengthen national industries,” he added.
PT Xinyi Glass Indonesia’s Director, Jia Ao, welcomed the collaboration, expressing gratitude for the MoU signing ceremony and highlighting the mutual benefits for both companies.
“We appreciate today’s signing ceremony. This collaboration is a positive step for the company. We believe that through this partnership, both companies will achieve mutual benefits. Xinyi Glass adheres to principles of integrity and professionalism,” Jia Ao stated.
This collaboration also brings fresh momentum to increasing domestic tin utilization. Despite government efforts to promote downstream, domestic absorption of tin has faced challenges and remains relatively low compared to export volumes.
The utilization of local resources, such as tin, will support a sustainable industrial ecosystem and open avenues for collaboration with domestic mining and chemical industries.
“This partnership represents a strategic step in supporting domestic industries. Tin is a critical component in glass manufacturing. Encouraging domestic absorption and leveraging local resources will enhance a sustainable industrial ecosystem and strengthen the domestic supply chain,” Dicky concluded. (*)
