Tue, 26 Oct 2010

Shanghai (ANTARA News) - Indonesia and China signed six cooperation agreements in the fields of mining and energy on Monday.

The signing of the memorandum of understanding between Indonesian and Chinese businessmen in the fields was done during a business forum in Shanghai, witnessed by Indonesian President Susilo Bambang Yudhoyono who was on a visit to that country.

Based on the agreements Shanghai Know-How Marine Equipment would be the distributor of Pertamina Marine lubricating oil.

The distribution area is China with a sales value of US$600,000 a year. The two parties have set the sales target of US$1,500,000 a year in the second year.

Another cooperation agreement was made for the management of Madura Strait PSC oil project in the Madura Strait, East Java.

The cooperation involves three companies namely Samudera Energy, CNOOC Ltd., and Husky Oil.

Indonesian mining company PT Aneka Tambang meanwhile would cooperate with Hangzhou Jinjiang Group Co. Ltd. to conduct bauxite exploration, exploitation and development projects.

Jinchuan Group Ltd. meanwhile wishes to build a nickel plant in Southeast Sulawesi with an investment of up to two billion US dollars in cooperation with Indonesian PT Barong Baragas Energy.

The other cooperation is for a power plant and a nickel exploitation worth US$700 million between PT Bumi Makmur Selaras and Hanking Industrial Group.

The nickel exploitation cooperation would also be carried out by PT Indonesia Mitra Jaya and Super Power International Holding Ltd. on eastern Seram Island.

Trade minister Mari Elka Pangestu who also witnessed the signing of the agreements said the cooperation would benefit Indonesia.

She said the cooperation would open opportunities for Indonesia to receive technology transfer and improve the sale value of domestic products.

She said the most important thing in cooperation was equality. Based on it she believed both parties would get a benefit.

She said the cooperation between Indonesia and China was one of the efforts to take a benefit of the ASEAN-China free trade agreement.

The two countries would overcome worries of certain sectors over the negative impact of the ASEAN-China agreement.

"Therefore the cooperation with China is not only in the oil/gas sector but also in agriculture, fisheries and small, medium businesses," she said.

The six memorandum of understanding signed in the fields of energy and mining are part of the 27 memorandum of understanding signed by the two countries in various fields.

Other cooperation agreements are in the fields of agriculture such as development of hybrid seeds, vegetable biotechnology and horticulture research and in infrastructure such as optic fibre and bridge development.

There are also agreements in the field of fisheries and culture such as film animation, she said.

Some 500 Indonesian and Chinese businessmen attended the business forum held at Pudong Shangri-Lat Hotel in cooperation between the Indonesian embassy in Beijing and the Chinese Council for Promotion of International Trade. (*)