European Investors Invited to Invest in Transportation Sector in Indonesia

INDUSTRY.co.id - Jakarta- Minister of Transport Budi Karya Sumadi invites more European companies to invest in Indonesia's connectivity and connectivity.

"Many European ships become an anchors of Indonesia's connectivity to Europe and America, as well as many airplanes connecting Indonesia and Europe directly," Budi said when met at the event "Europe Day "in Jakarta, Wednesday (9/5/2018)

In his speech, the MoC explained that Europe has been a good partner for Indonesia in the long term.

He believes the reliability and sharpness of technology owned by Europe can provide added value for the progress of the development of nations transportation projects.

"Europe has helped Indonesia build an air bridge and water bridge that is very effective to build tourism and logistics connectivity," said Budi.

A total of 50 out of a total of 200 European companies active in Indonesia, engaged in transportation and transportation among French companies Thales who helped build LRT signal system in Indonesia and establish a navigation system in Eastern Indonesia based in Makassar.

In addition, Swedish companies such as Scania and Saab AB have also provided ground transportation modes and equipment procurement to manage port traffic in Indonesia.

According to the Special Staff of the Minister of Transportation on International Relations Dewa Made Suryawan, Indonesia expects investments that are not only infrastructure development but also the operation of facilities and infrastructure, including the technology used in transportation mode.

The port of Patimban in Subang, West Java, for example, has indeed been financed by Japan's construction of Rp14.17 trillion through Japan International Cooperation Agency (JICA), but in operation it is expected that there will be participation from Europe.

In this case, Ministry of Transportation aimed to cooperate with French shipping company, Compagnie Maritime d 'Affretement - Compagnie Generali Maritime (CMA-CGM), in order to operate through Port of Patimban.

So far, the world's third largest shipping company has been carrying large ships over 5,000 TIUs to Tanjung Priok directly from the West Coast, Europe. From there they bring in imported goods and then come out with Indonesian seafood products to be exported to America.

"So we not only talk about 'hard infrastructure' but also soft infrastructure, we are always talking about how to fill the maritime axis and sea toll program by inviting private investors to cooperate with our SOEs," said Dewa.

The former Indonesian Ambassador to Sweden also stressed that Indonesia wants a comprehensive investment, meaning that investment is not only from incoming capital inflows but must also support the technology transfer process.

The Indonesian initiative was welcomed by EU Ambassador to Indonesia Vincent Guerend stating that European companies have been involved in various economic sectors in Indonesia including financial services, consumer goods production, and transportation.

At present, various European companies operating in Indonesia have employed more than one million domestic workers.

"We are not only active in trade and investment cooperation but also technology transfer such as aeronautical cooperation with PT Dirgantara Indonesia and port management in Sumatera We are always ready to join for mutually beneficial cooperation," said Ambassador Vincent. (Ant)