Indonesia Encourages China to Increase Investment

Text of report in English by Indonesian government-owned news agency Antara website

The Indonesian government hopes that China will increase its investment in Indonesia, which so far only accounts for 0.3 per cent of the total foreign investments in the country, Industry Minister Fahmi Idris told an Indonesia-Chinese Business Forum in Jakarta on Thursday [15 May 08].

“We hope that China, which has a high economic growth, will increase its investment in Indonesia so that it will contribute to Indonesia’s economic growth,” Idris said.

He said that China only contributed 0.3 per cent of the total USD 10.3 billion investments realised in 2007.

China has become an important trading partner for Indonesia. Chinese non-oil and gas commodities accounted for 15 per cent of Indonesia’s total non-oil and gas commodity imports in 2007, the minister said.

He said that Indonesia’s non-oil and gas exports to China were still smaller than its exports to Japan which accounted for 15 per cent of its total exports.

“Indonesia’s non-oil/gas exports to China only accounted for seven per cent of its total exports. Seeing the potential both countries have, I am convinced both nations still have ample chances to increase their economic cooperation,” Idris said.

He also called on Chinese businesses to make Indonesia a basis for their business operations and to make use of the ASEAN-China Free Trade Area.

“The China-Indonesia partnership will contribute to the freer and more open flow of trade and investment in [the] Asia-Pacific region,” he said.

Indonesian Ambassador to China Sudrajat said that the Chinese government was encouraging its businesses to invest overseas.

He predicted Chinese investments that were flowing overseas accounted for about USD 80 billion, and it would continue to increase to USD 200 billion in the coming 5 to 10 years.

“That is an opportunity we are paying attention to so we are inviting a Chinese delegation to Indonesia,” he said.

Sudrajat said most of the Chinese investors coming to Indonesia were first timers so they needed facilities and services to realise their investments.

Therefore, he called on regional administrations to provide facilities for the Chinese investors. The delegation was composed of Chinese investors in the fields of oil and gas, automotive, audio video and its components, forestry, fishery, agriculture, construction, infrastructure and multifarious industry.

Originally published by Antara news agency, Jakarta, in English 15 May 08.

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