RI-China seals $20b of trade, investment deals
RI-China seals $20b of trade, investment deals
Rendi A. Witular, The Jakarta Post, Beijing
Indonesia and China have signed transactions and investment deals
worth US$20 billion on Wednesday as part of efforts by the two
nations to triple bilateral trade to US$30 billion over the next
five years.
The signing of six memorandums of understanding (MOUs) and
four agreements between Indonesian state enterprises and their
Chinese counterparts as well as the private sector were witnessed
by visiting Vice President Jusuf Kalla
"There is now a good opportunity for Chinese businessmen to
invest in Indonesia due to our favorable and competitive exchange
rate. You (businessmen) can now buy land and invest in machinery
cheaper than before," he said.
The Vice President also said that his visit to China was not
"to seek charity".
"We appreciate Chinese businessmen for long involvement in
Indonesia. I am here now to do business with you, not to seek
charity," he said before a gathering of Chinese and Indonesian
businessmen in a seminar to promote trade and investment
opportunities in Indonesia.
According to official from the Office of the State Minister of
State Enterprises, Aris Mufti, the multibillion dollar
transactions and investments will be carried out over the next 15
and 20 years.
Kalla also held a one-on-one meeting with executives from the
Export Import Bank of China (EXIM Bank), the China Petroleum and
Chemical Corp. (Sinopec), the China Development Bank (CBD), the
Huadian Corporation, the China National Offshore Oil Corporation
(CNOOC), the China Road and Bridge Corporation (CRBC), the China
National Petroleum Corporation (CNPC), the Golden Concord
Holdings Limited, the China International Trust and Investment
Corp. (CITIC) and the ZTE Corporation.
The VP's shortened trip -- due to the weakening rupiah against
the U.S. dollar -- followed in the steps of a visit by President
Susilo Bambang Yudhoyono in July. During that visit, Susilo
signed investment deals worth a total of $9 billion, in MOUs and
agreements, with the Chinese government and private sector.
Aris told The Jakarta Post that the total amount in investment
and transactions for all the deals signed by both Susilo and
Kalla were estimated to reach some $40 billion over the next 20
years.
Indonesia badly needs foreign technology and capital to
develop its natural resources, while China, with more than US$710
billion in foreign exchange reserves, has been shopping around
the world to secure stable sources of raw materials.
MOU and agreements signed in China
1. MOU between PT Perusahaan Gas Negara (PGN) and CNOOC SES Ltd.
for project cooperation in developing gas a transmission pipeline
linking East Kalimantan and Central Java.
2. Technical and business agreement between PT Inti, Alcatel
Shanghai Bell and PT Alcatel Indonesia on telecommunication
products and for the development of Eastern Indonesian
telecommunication infrastructure.
3. MOU between PT Krakatau Steel, PT Sumbergas Sakti Prima,
Chengda Chuan Wei Group Co. Ltd., and Sinchuan Chuan Wei Group
Co. Ltd. for the development of an iron ore mine in Kalimantan.
4. MOU between PT Antam and Aluminum Corporation of China Limited
for a smelter grade alumina project.
5. MOU between PT Jamsostek, PT Transpacific Securindo and
Hualing Group Company Ltd on investment cooperation in the
medical sector in Indonesia.
6. MOU between PT Jamsostek, PT Transpacific Securindo and
Hualing Group Company Ltd. on investment cooperation in housing
development in Indonesia.
7. Cooperation agreement between PT Sumber Alam Sultra and Si
Chuan Guo Hao Zhong Ye Co. Ltd. on the development of hybrid rice
seeds.
8. Cooperation agreement between Artha Graha Networks Associates
and Guangcai Energy Company Ltd. on the development of Riau
Islands province.
9. MOU between Indonesian and Chinese governments for a
feasibility study into the development of the Indonesian sugar
industry towards sugar self-sufficiency by 2009.
10. Contract agreement between PT Dizamatra Powerindo and China
National Electric Cable & Wire Import-Export Cooperation for the
Sibayak Geothermal Power plant in North Sumatra.