Wed, 24 Nov 2010

TEMPO Interactive, Jakarta:The government has asked China to invest in shipping and harbor development. One of the industry potential, said Edy Putra Irawadi, deputy Coordinating Minister for the Economy, in charge of Industry and Trade, is the big volume, 110.000 ships or around 30 percent of the world trade volume pass through the Malacca Strait on the Sumatra east coast.

The government also wants to build connectivity in eastern Indonesia to reduce activities in Java. According to Edy, China is expected to participate in Indonesia’s construction of harbors because China is regarded as having mastered good shipping technology and harbor management system.

The Chinese Ambassador to Indonesia, Zhang Qiyue, admitted that her country is among the newest investors in Indonesia. Two years ago, Chinese investment in Indonesia amounted to US$ 139.6 million but it dropped to US$ 65.5 million last year due to the global economic crisis.

In regards to the investment offer, Zhang wants Chinese companies to know Indonesia better. “They must begin by getting to know the policies, needs and Indonesia’s development priorities,” she said.

Indonesia is currently putting priority on infrastructure and economic corridor development. According to Zhang, the government must support the private companies’ participation. The Chinese government also supports Indonesia’s investment expansion, “We monitor and support the shift from energy and natural resources investment to communication, farming, service, fisheries and renewable energy,” she said.

China has provided a soft loan of US$ 2 billion to support road, bridge and power plant development. “Indonesia is the country which has received the biggest funds from China,” said Zhang.