SBY to wrap up deals in China trip
Zakki P. Hakim, The Jakarta Post, Jakarta
President Susilo Bambang Yudhoyono is set to leave for China on Wednesday, with an aim of boosting investment and bilateral trade between the two countries.
Minister of Trade Mari E. Pangestu said the President's entourage would seek to boost trade and investment through materializing several deals made in the Strategic Partnership agreement signed by leaders of the two countries in April.
"The deals will particularly relate to natural resources projects, with revenues reinvested in Indonesia. That way, we ensure revenues from the projects will not leave the country," she said on Tuesday.
More Chinese investments in Indonesia would eventually raise bilateral trade, she said, adding that the government would set up an Indonesia-China investment forum similar to the one established with Japan.
Mari said another highlight of the visit would be the official disbursement of the so-called "Concessional Loan" of US$300 million promised by the Chinese government to finance infrastructure projects in Indonesia.
The Concessional Loan was a soft loan from Beijing, due to mature in 15 years, with a 3 percent interest rate and seven-year grace period, she said.
Mari added the government would ask China to crack down on companies there involved in illegal logging in Indonesia.
"We would ask (China) to monitor and check illegal logging -- at least for now. We will talk about the detailed and technical measures in a joint commission meeting in August," she said.
Earlier, the office of Coordinating Minister for the Economy said that the $300 million soft loan would be use to finance public infrastructure projects that were not commercially feasible but had a multiplier effect on the economy.
These include developing a double-track Prupuk-Kroya railway in Central Java, the Parit Baru coal-fired power plant in West Kalimantan and the Jatigede dam in West Java.
Indonesia's exports to China last year reached $4.60 billion -- oil and gas $1.17 billion; non-oil and gas $3.44 billion -- up 21.10 percent compared to 2003.
Meanwhile, the country's imports from China last year reached $4.10 billion -- oil and gas $743 million; non-oil and gas $3.36 billion -- up 38.68 percent.
The two countries' balance of trade in 2004 resulted in a surplus of $503.40 million for Indonesia, thanks to oil and gas exports.
Last month, Coordinating Minister for the Economy Aburizal Bakrie said the two governments expected bilateral trade to reach at least $30 billion during the next five years.
"The current total trade value is still too small considering the potentials," Aburizal said after meeting China's Minister of Commerce Bo Xilai.
The President's entourage is scheduled to depart on Wednesday morning and hold a gathering with representatives of the Indonesian community in Beijing later in the evening.
During his visit, Susilo is also scheduled to meet with Chinese President Hu Jintao and Prime Minister Wen Jiabao on Thursday before meeting the following day with Chinese businesspeople interested in investing here.
The visit, rescheduled from the original July 13 meeting in part because of the fuel crisis at home, was a response to Hu's earlier visit to Jakarta in April for the Asian-African Summit.
Hu and Susilo signed the strategic partnership agreement after the summit.