China to Invest US$4-5 Bn in Indonesia

VIVAnews - China announced its plan to invest US$4 billion to US$5 billion in Indonesia following the signing of 27 memorandums of understanding which are to be realized within the next 2-4 years.

The MoU signing involves China-based firms on manufacture, oil and gas, and telecommunication.

One of the companies joining the cooperation is Artha Graha Group, which is to invest in fiber optic network. A China-based oil and gas company also agrees to invest US$600 million.

"The most realistic issue is concerned with the development of smelter for alumina, which involves Hang Zhou and Aneka Tambang in West Kalimantan," said Gita Wirjawan, Chief of the Capital Investment Coordinating Agency （BKPM） yesterday.

The smelter has the capacity of between 400-500 thousand tonnes worth US$1.2 billion.

BKPM believes it can hit Rp 200 trillion of investment by the end of 2010.

Gita Wirjawan said up until September, the investment has reached Rp 150 trillion.

"We're targeting to get Rp 161 trillion this year," he said.

As reported, the realized investment in the third quarter of 2010 reached Rp 56.7 trillion. To achieve the targeted investment of Rp 1,500 trillion in 2014, BKPM has to book Rp 550 trillion as of 2011.