Australia to invest US$2.5b in mining, agriculture sector
Australia to invest US$2.5b in mining, agriculture sector
Urip Hudiono, The Jakarta Post, Jakarta
Several Australian companies have affirmed their plans to invest
US$2.5 billion in Indonesia, mainly in the mining and
agricultural sectors.
Mining giant BHP Billiton Limited would be the biggest
investor, contributing $1.7 billion.
"The companies made an immediate response to President Susilo
Bambang Yudhoyono's meeting last week with Australian Prime
Minister John Howard," Coordinating Minister for the Economy
Aburizal Bakrie said on Monday.
"The affirmation also reflects foreign investor confidence in
the improving business climate here," he said.
Aburizal said BHP Billiton had been looking to explore and
mine the potentially huge coal resources in Central Kalimantan.
"They are also looking into other mining opportunities on Gag
Island," he said, referring to the island in Papua.
BHP Billiton has a 75 percent stake in PT Gag Nickel, a
company that is seeking to mine 216 million tons of laterite
nickel deposit worth $800 million on Gag Island. However, the
firm has indicated that it would stop the mining activities
should the United Nations put the island on its World Heritage
list for marine biodiversity.
Aburizal said an Australian firm in the explosives industry
had also confirmed its investment plan worth $120 million.
"Another Australian agriculture company, meanwhile, will also
build a dairy product factory here," he added.
During his visit to Australia last week, Susilo met with the
representatives of several Australian companies including BHP
Billiton, mining and blasting products manufacturer Orica
Limited, ANZ Banking Group, Futuris Corp and Newmont Australia.
In the meeting, the government promised to address the
companies' complaints of corruption, decentralization, labor
regulations and weak bureaucracy.
Besides Australia, Aburizal said other countries had also
expressed their interest in investing in Indonesia, with China
leading the pack.
"We will soon sign a memorandum of understanding with China
for their investment plans in the natural resources sector," he
said, adding that China -- along with Malaysia -- was also
interested in investing in major infrastructure projects like
toll roads and power stations.
"Singapore and the Netherlands, meanwhile, have shown their
interest in airport and drinking water projects."
The government offered a first batch of 91 major
infrastructure projects worth US$22.5 billion during the
Infrastructure Summit in January. Another batch of infrastructure
projects worth $57.5 billion will be offered later this year.