A delegation of 174 business players from China met Indonesian counterparts Thursday to discuss Indonesia's potential for investment and business cooperation.
The delegation, the biggest in number from China so far, included representatives from five sectors: Mining and energy; small to medium scale enterprises; agricultural and chemicals; infrastructure and automotive and electronics.
"Indonesia has the biggest market opportunity among ASEAN countries. There are many opportunities for investment in infrastructure projects," Industry Minister Fahmi Idris said while officiating the meeting.
Indonesia's Ambassador to China, Sudrajat, said Chinese investors from each sector would learn about the business climate in Indonesia from Indonesian businessmen and government officials.
He said Indonesia could expect between US$80 billion and $200 billion in investments from China within the next five to 10 years.
According to the Central Statistics Agency (BPS), Indonesia's total trade with China rose 33 percent from US$10.97 billion in 2006 to $14.62 billion in 2007.
Exports to China increased 15.96 percent, from $8.34 billion in 2006 to $9.68 billion last year. Imports from China increased 28.94 percent from $6.64 billion to $8.56 billion from last year.
An Indonesia-China task force was also set up comprising officials from the Industry Ministry, the Trade Ministry, the Foreign Affairs Ministry, the Investment Coordinating Board (BKPM) and local governmental agencies.
One function of the task force will be to facilitate investors in acquiring investment permits in Indonesia.
However, BKPM chairman M. Lutfi and Sudrajat said the government should protect the country's raw materials from foreign investors.
"Chinese investors are very interested in our raw materials like steel, bauxite, iron and nickel. However, the government must ensure they don't take those materials outside Indonesia, as (they) are our valuable assets," Lutfi said.
China's minister counselor Fang Qiuchen said on the sidelines of a conference on electricity technology the Chinese government had disbursed US$1 billion in loans for the Indonesian government.
The loan package is to support four big projects in power and infrastructure sectors. The four are the Sumatra bridge project, Labuhan Angin (North Sumatra) and Cilacap (Central Java) power projects and the Jatigede dam project in West Java. (dia)
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