Chinese business groups eye more investments in RI<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
Chinese businesspeople are seeking investment opportunities in
\nIndonesia's oil and gas and infrastructure sectors, touting their
\nexperience and advanced technology.<\/p>\n
\"After more than 20 years, we have (accumulated) experience in
\nthe oil and gas and infrastructure sectors. It makes us good in
\ntechnology,\" Chen Jian, assistant to China's Minister of
\nCommerce, said in his opening remarks at the China-Indonesia
\nEngineering and Technology Business Forum (CIEBTF) on Monday.<\/p>\n
Jian praised Indonesia for its \"good labor,\" abundant natural
\nresources and huge potential market.<\/p>\n
He said China had a huge demand for oil and gas and the
\ncountry still imported the commodity to fulfill its needs.<\/p>\n
Several of China's oil and gas companies have been operating
\nin Indonesia for several years, including state-owned giant China
\nNational Offshore Oil Cooperation (CNOOC). Earlier, CNOOC
\nconfirmed that it was eyeing bigger opportunities here.<\/p>\n
Separately, CIEBTF deputy chairman Heroe Wiedjatmiko touted
\nChinese technology, saying it was a match for Western technology,
\nbut cheaper by 30 percent to 40 percent.<\/p>\n
During the forum, several Chinese businesspeople raised
\nquestions on the prospect of doing business in Indonesia and
\nother aspects, including bank interest rates and \"illegal\"
\ntaxation.<\/p>\n
Head of the Chinese section of the Indonesian Chamber of
\nCommerce and Industry (Kadin) Sharif C. Sutardjo explained that
\nbank interest rate in Indonesia now stood at 18 percent per year,
\nmuch higher than 5 percent in China.<\/p>\n
He also said \"unauthorized taxation\" could reach 12 percent of
\nproduct value.<\/p>\n
He noted that in order to attract Chinese businessmen, who are
\nnow aggressively looking for investment opportunities overseas,
\nIndonesia should work hard to improve its business climate.<\/p>\n
\"We must offer points of competitiveness, such as high
\nproductivity and efficiency,\" said Sharif.<\/p>\n
Describing how aggressive Chinese businessmen were moving into
\nIndonesia, Sharif said China accounted for about 50 percent of
\nbidders who had participated in Indonesia's recent tender for oil
\nand gas contracts.<\/p>\n
As of 2002, total investment by China in Indonesia reached US$
\n434.2 million, with 199 projects.<\/p>\n
Director general of international trade at the Ministry of
\nIndustry and Trade Pos M. Hutabarat told The Jakarta Post that
\nthe Chinese government had provided US$400 million in
\nconcessional loans to Indonesia for 15 years to fund several
\ninfrastructure projects.<\/p>\n
Some $150 million of the loans is being used to develop the
\n200 Megawatt (MW) Labuhan Angin power plant project in Sibolga,
\nNorth Sumatra.<\/p>\n
Indonesia is proposing to use the remaining funds for the
\nSuramadu bridge to connect Surabaya, East Java, to the island of
\nMadura, and double-tracking of the railway linking Cirebon in
\nWest Java to Kroya, Cilacap, Central Java.<\/p>\n
According to Pos, the Indonesian government recently asked for
\nan additional loan of $70 million from China, but the latter had
\nyet to make any response.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/chinese-business-groups-eye-more-investments-in-ri-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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