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Bank of China, BKPM to Promote Investment

20 June 2015 10:54 WIB

Franky Sibarani. TEMPO/Wisnu Agung Prasetyo

TEMPO.CO, JakartaThe Capital Investment Coordinating Board (BKPM) will cooperate with the Bank of China in promoting Indonesia's investment potential in China next July.

BKPM Chief Franky Sibarani said in a written statement here on Wednesday that in its investment promotion next July the BKPM would meet with the regional governments and local businessmen in Zhejiang and Fuijian provinces.

"Cooperation with the Chinese bank is effective in reaching potential investors in that country because the bank has extensive networks of customers and partners," Sibarani said.

He said that BKPM had also cooperated with the Bank of Tokyo Mitsubishi (BTMU) when it was visiting Japan last May. The event was attended by some 600 investors who were customers and partners of BTMU.

China has so far become a strategic partner of Indonesia in the economic field.

The Chinese investment in Indonesia is made directly from China or from other countries (special purpose vehicle countries) such as investment from Singapore, Cayman Island, British Virgin Island, Seychelles and others.

Over the past five years, China has invested US$1.61 million with 1,427 projects in Indonesia.

Although the Chinese investment plan in Indonesia shows an upward trend over the past five years, reaching US$23.3 billion, yet only about seven percent are realized.

"Therefore, we are intensifying investment promotional activities in China. We held a business forum in Beijing last May when we were able to attract five Chinese companies to make investment commitment worth US$16,7 billion in Indonesia," the BKPM chief said.

Of their US$16.7 billion commitment, investors have sought principle permits for projects valued at US$700 million and have earmarked US$16 billion for exploring projects in the sectors of energy, mining, and infrastructure, as well as the processing and automotive industries.

The business forum was aimed at providing firsthand information to Chinese businessmen about the potential areas of investment and procedures in Indonesia," he stated.

Moreover, it was also expected to increase the value of realized Chinese investment in Indonesia, he emphasized.

The BKPM has planned to open a representative office in China to increase the realization of Chinese investment plans in Indonesia, he added.

ANTARA




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