Indonesia Becomes One of the Magnet Investments of Chinese Entrepreneurs

INDUSTRY.co.id - Jakarta, Director General of Endurance and Development of International Industrial Access (KPAII) Harjanto said, Indonesia is one of the investment destination countries for China. Moreover, Indonesia is among the world's 10 largest manufacturing countries.

Investment is one of the instruments that contribute greatly to the national economy. It is expected that with China's continuous investment in Indonesia, it will also bring positive effects for the enhancement of the competitiveness of domestic industries, said Harjanto in Jakarta (13/7/2017).

He added that some Chinese investment in Indonesia that has been running, among others, PT. Sulawesi Mining Investment is engaged in nickel mining with a capacity of 300.00 tons per year with an investment value of USD 636 million in Morowali Industrial Park, Central Sulawesi. PT. Sulawesi Mining Investment is the first nickel smelter in Indonesia using Arc Furnace Rotary Kiln technology. Furthermore, PT. Virtue dragon Nickel Industry engaged in ferronickel processing in Konawe, Southeast Sulawesi with an investment value of USD 5 billion with a capacity of 600,000 tons per year.

There is also Anhui Conch Cement Company engaged in the cement industry with a total investment of USD 5.7 billion and a production capacity of 20 million tons per year, he added.

In Indonesia, Anhui Conch Group will build five integrated plants and one grinding plant in South Kalimantan, Banten, North Sulawesi, South Sulawesi and West Papua. China Communications Constructions Company Ltd. (CCCC) will also participate in the cooperation of industrial estate development outside Java Island and able to attract its business units to invest in the manufacturing sector in Indonesia.

The CCCC acknowledged that Indonesia is a strategic potential partner for them, especially in the development of infrastructure projects, such as power plants, bridges and railways, "said Harjanto.

One of the CCCC's business units, namely China Harbor has expressed interest in the development of industrial estates in Kuala Tanjung and cooperation in the port sector. In addition, investment commitments occurred through the signing of the MoU between Tsingshan Group and Delong Group with PT Indonesia Morowali Industrial Park on the cooperation of the construction of a carbon steel plant in the industrial area of ​​Morowali, Central Sulawesi with a capacity of 3.5 million tons per year and total investment value of USD980 million.

Another agreement was signed by the MoU between Tsingshan Group and Bintang Delapan Group and PT Indonesia Morowali Industrial Park on the cooperation of the construction of a power plant in Morowali industrial area, Central Sulawesi with a capacity of 700MW and a total investment value of USD650 million.

Then, a number of Chinese investors who are exploring investment opportunities in Indonesia, including Zhengzhou Demeter New Energy Technology Co. Ltd., Shandong Water Development Group Co. Ltd., China Meheo, CEFC Beijing International Energy Company Limited, Jiangsu Boda Enviromental Protection Co. Ltd., Beijing Huayou International Logistics & Engineering Service Co. Ltd., and Risen Energy Co. Ltd.

Furthermore, Beijing East Environment Energy Technology Co. Ltd., China Power International Development Ltd., Guangdong Guanyeu Highway & Bridge Company Ltd., Louyang Yixin Enviromental Protection Technology Co. Ltd., and HenanRuyangTiancai Textile Co. Ltd.