Cairo (ANTARA News) - Indonesia`s investment in Egypt increased drastically over the past five years to US$270 million while the figure in the 1970-2006 period was only USU$109.31 million, an Indonesian embassy official said.
"The cumulative value of Indonesia`s investment in the 1970-2006 period was only recorded at US$109.31 million," Walther S. Kariodimedjo, acting trade attache at the Indonesian Embassy here said on Monday.
Quoting data from the Egyptian Central Bureau of Statistics (CAPMAS), Walther said that Indonesia`s investments in Egypt were among others made in the textile, garment, food, chemical, engineering, warehousing and construction material sectors.
He said that Indonesia`s investment began to increase in 2007, recording a value of US$270 million following the establishment of three joint-venture companies, namely Indorama Shebin C (2007), Pyramid Glass (2008) and Indomie (2009).
Egypt`s investment in Indonesia now was still recorded at a small value, namely US$450,000. The Egyptian investment was made in such sectors as distributors, export-import activities and travel bureaus. This is based on the Indonesian Capital Investment Coordinating Board (BKPM).
In the meantime, an Indonesian company, PT Multistrada Arahsarana Tbk, is planning a joint-venture business with an Egyptian state-owned firm, Transport & Ingineering Co (Trenco), to produce motor vehicle tires in Iskandariyah.
The joint-venture business is estimated to be worth US$270 billion with a production capacity of 8,000 units of tire per day.
About 35 percent of tire production will be exported while the remaining 63 percent will be designed to meet the domestic demand.
"Last May, a team from PT Multistrada conducted a feasibility study with regard to the availability of land, machines and electricity supplies," Walther said.