Saudi, U.S. firms to invest $15b in RI

Saudi, U.S. firms to invest $15b in RI

JAKARTA (JP): Ameen Al-Hindi Est. of Saudi Arabia and Link International Inc. of the United States have committed themselves to investing up to US$15 billion in 13 projects in Indonesia, in cooperation with local business group Tatanusa.

Executives of the three businesses signed investment contracts for the 13 foreign-investment projects here yesterday.

Alie Ermas of PT Tatanusa Mineral said after the signing ceremony that the committed projects include a $620-million cement plant in East Kalimantan and a $365 million cement plant in Madura, East Java.

He explained that the planned Madura plant will have an annual production capacity of 2.3 million tons, while the one in East Kalimantan will have an annual capacity of three million tons.

"When these two cement plants start production, it is expected that Indonesia will no longer have to import cement." Alie was quoted by Antara as saying. "Instead, Indonesia will be able to export cement to earn foreign exchange."

However, he did not elaborate on the timetable of the projects.

Although Indonesia is one of the world's largest cement producers, with an output of some 25 million tons per annum, it still imports the commodity to meet the increasing domestic demand from the booming construction industry.

In addition to the two cement plants, the investors are committed to investing $2 billion in a phosphate mining project, $1.5 billion in a gas project and $1.5 billion in an oil refinery.

They also plan to set up a steel project with a planned investment of $100 million, a tile-making project worth $18 million and a number of property projects in Bali and Manado, North Sulawesi. (rid)