Chinese investors commit to infrastructure projects<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
A number of investors from China have committed US$1.5 billion in
\nvarious industry sectors ahead of next week's Infrastructure
\nSummit, intended to lure massive fresh investment to the country.<\/p>\n
At least 10 major Chinese firms, including members of the
\nChina National Machinery Import Export Cooperation (CMIC) and the
\nChina Coal Industry Cooperation (CCIC), are ready to invest in
\nthe power, coal, oil and gas exploration, telecommunications,
\nforestry, transportation and maritime and fisheries sectors.<\/p>\n
According to the Indonesia-China Cooperative Investment
\n(ICCI), the investors were interested in infrastructure and
\nmanufacturing projects.<\/p>\n
ICCI executive director Jusuf Rizal said one investor had
\ncommitted to a $500 million pilot project to build a mini power
\nplant with PT Power Jawa Barat in Serang, Banten.<\/p>\n
Jusuf said other investors were interested in building mini
\npower plants valued at $100 million each in regencies.<\/p>\n
"In order to promote the (power plant) project, the ICCI will
\nbe working with the Regency Administrations' Association," he
\nsaid.<\/p>\n
At the two-day summit, set for Jan. 17 and Jan. 18 at the
\nShangri-La Hotel Jakarta, the government is to offer 91
\ninfrastructure projects across the country with a total value of
\n$22 billion to local and foreign investors.<\/p>\n
The government estimates that it would need some $75 billion
\nto finance the projects, but could only provide about 20 percent.<\/p>\n
Coordinating Minister for the Economy Aburizal Bakrie said the
\nmajority of highly profitable projects, mostly located on Java,
\nwould be offered to the private sector.<\/p>\n
The projects were expected to give an average return on
\ninvestment of 15 percent to 23 percent.<\/p>\n
Meanwhile, the government would handle projects on the islands
\nof Kalimantan, Papua, Sulawesi and Sumatra, which were less
\nprofitable in the short-term.<\/p>\n
Participation at the summit, hosted by the office of
\nCoordinating Minister for the Economy and the National
\nDevelopment Planning Board (Bappenas), is by invitation only.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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