Mar 23, 2012

Indonesia - RI inks $17b business deals with China

Indonesian businesses signed 15 investment agreements with Chinese corporations, worth a total of US$17.4 billion, in Beijing on Friday.

"I am happy to hear of the business agreements between Indonesia and China, which are an indication of the growing cooperation between the two countries," President Susilo Bambang Yudhoyono said in a speech after meeting with Wan Jifei, the head of the Chinese Council for the Promotion of International Trade at a hotel in China's capital city.

Among the agreements signed was a technical cooperation agreement between Indonesia's state-owned steel company PT Krakatau Steel and China's Capital Engineering and Research Inc. Ltd., as well as a deal to lend $200 million in long-term credit to finance the construction of Krakatau's Blast Furnace Complex.

Also signed at the gathering was a joint investment between PT Bangungraha Sejahtera Mulia and China Railway Construction for the Sunda Strait Strategic and Infrastructure Development.

Trade Minister Gita Wirjawan acknowledged that he was happy with the business deals, which he said could pay off the 2011 trade deficit between Indonesia and China, which analysts had blamed on the "problematic" ASEAN-China Free Trade Agreement (FTA).(dic)

Bagus BT Saragih
The Jakarta Post,

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