Indonesia Eyes Investment Possibilities in Iran

TEMPO.CO, Jakarta - Chairman of the Investment Coordinating Board (BKPM) Chairman Mahendra Siregar, mentioned a number of national companies that were exploring the option to invest in Iran. Not only in oil and trade, the investment will also be made in products such as palm oil, paper, food, beverage, electronics and automotive components.

"But the biggest opportunity is still oil. The government is looking for the right cooperation scheme," Mahendra said during a press conference in Jakarta on Tuesday, February 11, 2014.

Based on BKPM's data, there are at least 30 active Iranian companies in Indonesia. On the other hand, there are very few Indonesian companies in Iran. "As for banks, only Bank Jabar has opened [a branch office] in Iran. Other banks are still in the assessment process with the technical team," he said.

The Middle East Committee Chief at the Indonesian Chamber of Commerce (Kadin)  Fadel Muhammad, said that banking was the biggest obstacle for Iran. Therefore, he added that Iran's Central Bank Governor invited Indonesia to invest in that country.

Meanwhile, an Indonesian company, Kreasindo Resources Indonesia, signed a memorandum of understanding with an Iranian company Nakhle Barani Pardis on Tuesday, February 11, 2014, for extra heavy crude oil trade and construction of refinery.

MARIA YUNIAR | ANANDA TERESIA | RACHMA TRI WIDURI