SBY to wrap up deals in China trip
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.