China To Invest US$32.8 Billion In Indonesia

Jakarta, Oct 1 (Antara) - China will increase its investment up to US$32.8 billion in Indonesia because Indonesia-China economic relations so far are only dominated by commodity trading, according to Industry Minister MS Hidayat. "China wants to follow Indonesia`s program. It will invest more capital because so far the volume of its investment is still small. Most of its business involves in the trade sector. So, the Chinese interest in increasing its investment will mark a new era in the relations between Indonesia and China," Minister Hidayat told a press conference at the Trade Ministry of Industry building here on Tuesday. Hidayat stated that Chinese President Xi Jinping will visit Jakarta on Wednesday and Thursday to witness the signing of joint venture agreements among 23 companies which involved a total investment of US$32.8 billion. "The agreements will cover a total investment of US$32.8 billion, among others, in the sectors of mineral processing, communications, housing and others," the ministry of industry noted. The events will be attended by about 800 business and government representatives, consisting of 300 members of the Chinese delegation and 500 members of the Indonesian delegation. "We will ask the Indonesian Chamber of Commerce (Kadin), the Indonesian Business Association (Apindo) and all relevant associations to join the events," Hidayat asserted adding that China has communicated with Indonesia over the business plans since one year ago. So far Indonesia exports raw materials to China such as coal, nickel and others but they are again imported in the form of value added goods. The Chinese investment in Indonesia in 2012 was recorded at US$141 million with 190 projects. It increased from US$128.2 million in 2011. In the first quarter of 2013, the realization of Chinese investment in Indonesia reached US$60.2 million with 99 projects. The investment is expected to increase further if it involves in infrastructure projects through the Master Plan for the Acceleration and Expansion of Indonesia`s Economic Development (MP3E). China is the world`s second largest economy with a gross domestic product reaching 8.2 trillion and with a population of 1.35 billion in 2012.