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Indonesia, China sign $23.3b in contracts

Jakarta Post | April 16, 2018
 The Islamic Chamber of Commerce , Industry and Agriculture (ICCIA)

Indonesia and China have signed five contracts worth US$23.3 billion as part of China’s Belt and Road Initiative, an ambitious road, rail and construction project spanning dozens of countries across Asia, Africa and Europe.

The contract, signed in Beijing late on Friday, was signed by companies from both countries and consists of a $2 billion hydropower plant in Kayan, North Kalimantan, a $700 million contract to develop facilities to convert coal to dimethyl-ether and a $17.8 billion joint venture to build a hydropower plant on the Kayan river.

Additionally, the contract includes a $1.6 billion joint venture to build a power plant in Bali and $1.2 billion to develop a steel smelter.

“We want to see continuous cooperation between investors from both countries, not just between governments,” said Coordinating Maritime Affairs Minister Luhut Pandjaitan, who was present during the signing of the contract, as quoted by Antara news agency.

The two countries also signed a memorandum of understanding on the development of Tanah Kuning Mangkupadi Industrial Park in northern Kalimantan and on the development of electric vehicles.

Luhut said Indonesia would seek further cooperation with China on some of Indonesia’s economic corridors, including those in North Sumatra, North Kalimantan, North Sulawesi and Bali, with an investment value of $51.9 billion.

Chinese deputy commerce minister Gao Yan during a bilateral meeting with Luhut said she would have further discussions with relevant institutions on the latter’s offer for an agreement between leaders of both countries.