China Pledges Billions to Invest in Indonesia

TEMPO.CO, Jakarta – The Investment Coordinating Board (BKMP) reported on Wednesday, April 1, 2015 the results of its recent visit with President Joko “Jokowi” Widodo to China. BKPM head Franky Sibarani said Chinese investor were interested in some particular sectors in Indonesia.

“Three investors have proposed permits to build power plants,” Franky said at his office on Wednesday, April 1, 2015, adding that the total investment offered by the investors reached US$6 billion.

In addition to the energy sector, Chinese investors are seeking to invest in harbor, shipyard and industrial area projects. Franky said the country was ready to splash US$24.9 billion for infrastructure development in Indonesia.

The harbor development would cost US$2 billion and the industrial area would need a total of US$12 billion worth of investment. The rest, meanwhile, will be directed to other industrial sectors.

According to Franky, the nature of the cooperation will be government-to-government as applied for the Jakarta-Bandung bullet train project.

Franky explained the government needed to weigh several aspects before partnering with China’s state-owned enterprises, including the cost to be imposed on infrastructure users.

Franky added that China had pledged a total investment of US$63 billion, but then pointed out that the realization of the country’s investment was at seven percent. BKPM sectorial promotion director Ikmal Lukman said his institution would need to go an extra mile to convince China of boosting its investment Indonesia.

“We will intensively communicate with China, perhaps [by] setting up a [BKPM] representative office in Beijing,” he said.

URSULA FLORENE SONIA