REPUBLIKA.CO.ID, JAKARTA -- The Indonesian government, through its Investment Coordinating Board (BKPM), has offered a number of infrastructure projects worth Rp217 trillion to China through an investment promotion roadshow in two major cities in China.
Investment promotion activities were held in Beijing (July 25) and Tianjin (July 27), in cooperation with the Embassy of the Republic of Indonesia (KBRI) in Beijing.
"Hence, the value of the projects offered at Rp217 trillion consisted of highway projects amounting to Rp42 trillion, a sea port project worth Rp60 trillion, power generation Rp100 trillion, and integrated tourism resort project valued at Rp15 trillion," Deputy Investment Planning of BKPM Tamba Hutapea stated in a press release here on Friday.
Such projects include the Kuala Tanjung Port and Integrated Lake Toba Tourism Projects in North Sumatra, the Port of Bitung in North Sulawesi, 15 power generation projects, five toll road projects, and 5 projects with Non-State Budget Infrastructure Financing Scheme/Business-to-Business Financing Scheme (Non-APBN/PINA Scheme).
China was chosen to be the country where the roadshow was held to promote infrastructure investment because the business people in this country have high interest in infrastructures.
"The infrastructure financing that is driven by the government is in the form of government-to-business entities cooperation (KPBU). In addition, infrastructure projects can also be offered to investors by the Non-APBN (B-to-B) Infrastructure Financing scheme," he explained.
Also present in the activity were Indonesian Ambassador to China Soegeng Rahardjo, Chief Operating Officer of PT Penjamin Infrastruktur Indonesia Salusra Satria, Assistant Deputy Coordinating Minister for Economic Affairs Bastary Pandji Indra, director of KPPIP Hendry Toruan, CEO of Lake Toba Development Authority Agency Arie Prasetyo, Special Staff of the Minister Energy and Mineral Resources (ESDM) Prahoro Nurtjahyo, Senior Manager of state-owned electricity firm PT PLN's Independent Power Producer (IPP) Djoko Dwijatno, as well as Director of Infrastructure Planning of the BKPM Heldy Son.
The promotion is done with the spirit of "Indonesia incorporated."
In investment promotion activities in Beijing, BKPM also cooperated with China Export & Credit Insurance Corporation (Sinosure).
The Chinese state-owned company is in charge of providing export and credit insurance to Chinese entrepreneurs investing overseas, including Indonesia.
The event in Beijing was attended by 273 participants from 155 leading companies in China, while the event in Tianjin was attended by 55 participants from 22 large companies in Tianjin.
Sinosure Vice President Zha Weimin revealed that the market roadshow, or market sounding event, was highly appreciated by Chinese companies as it featured investment opportunities in real projects.
"This is evident from the high number of participants who attended the event," he remarked.
Based on BKPM data, China is one of the main contributors to the realization of investment in Indonesia. Throughout the period of January-June 2017, China was ranked third with an investment value of US$2 billion.
China's position is below Singapore, which topped the list with the realization of investment worth $3.7 billion and Japan with $2.8 billion.
China's position is above Hong Kong and the United States with an investment, reaching $1 billion, respectively.
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