Jakarta, Oct 27 (Antara) - Indonesia and the United States are expected to conclude business deals valued at US$20 billion in the on-going visit of President Joko Widodo (Jokowi) to Washington this week.
As part of the US$20 billion deals, the Capital investment Coordinating Board (BKPM) mentioned a U.S. investment plan worth US$2.4 billion, agreed to during the President's visit.
The Head of the BKPM, Franky Sibarani, said in a written statement made available in Jakarta on Tuesday that of the total investment plan, about one billion US dollars were for investment expansion, US$600 million for electricity development, US$750 million for downstream agro industry and US$12 million for heavy equipment/machinery industry.
"The US$2.4 billion investment plan that has been identified by the BKPM is part of the business deals between Indonesia and the United States, worth US$20 billion," Sibarani said.
According to BKPM's records, from 2010 to the third quarter of 2015, the United States' investment in Indonesia was recorded at US$ eight billion, with the mining sector attracting the biggest share of US$7.2 billion, followed by trade at US$258 million, food industry at US$167 million, transport industry at US$142 million, and chemical or pharmaceutical industry at US$56 million.
In Washington on Sunday Franky Sibarani revealed that the process of scoring business deals, which would be signed, had been ongoing since a long time.
"Some of the business deals have been under negotiation for a long time, particularly in the energy sector. So, what remains to be done is their finalization. To its end, the president's visit will serve as a momentum," he affirmed.
On the occasion, Foreign Minister Retno L.P. Marsudi stated that President Joko Widodo (Jokowi) is expected to bring home an investment commitment worth US$20 billion from his visit in the United States,.
At a press conference at the Blair House in Washington on Sunday night, Marsudi remarked that President Jokowi will prioritize the economy during his visit to the United States.
"The cooperation with 19 companies in various sectors will amount to US$20 billion," the minister said.
Head of BKPM Franky Sibarani noted that one of BKPM's objectives during the visit to the United States this time was to lend assurance to business circles regarding Indonesia's investment potentials apart from the areas in which the country had already drawn investors from the United States.
"Ninety percent of investment from the United States in Indonesia is still focused on the mining sector. It is hoped that President Jokowi's current visit will add momentum to the efforts to introduce Indonesia's investment potentials to investors in the United States, especially in priority sectors such as infrastructure, agriculture, maritime, and industrial, including downstream," he emphasized.
Sibarani pointed out that the United States' investment in Indonesia continues to be focused on the mining sector.
President Jokowi and his delegation had a one-on-one business meeting at the Lee Dining Room, Blair House, on Monday. Jokowi will meet CEOs of companies from the United States, such as Conoco Phillips Ryan Lance, Vice Chairman General Electric John Rice, CEO Millennium Challenge Corporation Dana Hydr, and Executive VP Upstream Chevron James Johnson.
The agreements on business deals were inked at the Lee Anderson Room between state-owned oil company Pertamina and Corpus Christie Liquefaction; Phillip Morris expansion; Cargill investment; Coca Cola expansion; Saka Energy and Swift Energy; state-owned electricity company PT PLN and General Electric; and the University of Udayana and SkyChaser Energy, among others.
Business deals were also be signed between PT PLN and UPC Renewable; PT PLN and Caterpillar; PT PLN and General Electric; PT Indonesia Power and General Electric; PT Kereta Api and General Electric (LoI); Perum PERURI and Crane Currency; Bank BNI Syariah and Master Card; Cikarang Listrindo and General Electric; Kilat Wahana Jenggala and Hubbell Power Systems; PT Pertamina and Bechtel Corporation; and self-signing on the making of Cylinder Head Caterpillar facilities.
During his US visit, President Jokowi also met with the executives of Chevron and General Electric.
Indonesia is considering to extend the work contract of the United States-based oil and gas company Chevron after President Jokowi's meeting with its Upstream Executive James Johnson.
Indonesian Minister of Energy and Mineral Resources Sudirman Said stated that Chevron, which had been operating for about 90 years, expressed interest to continue its investment commitment in Indonesia.
Said made the remarks after President Jokowi and his officials had a one-on-one meeting with Chevron executives at the Blair House in Washington on Monday.
"They have about 40 thousand employees in Indonesia. Ninety percent of the workers are Indonesians. They are committed to develop Indonesia," Said noted.
In the meantime, several executives from the US-based company General Electric (GE) also met President Joko Widodo (Jokowi) to discuss their company's intent to continue the development of power projects to generate electricity in Indonesia.
Energy and Mineral Resources Minister Sudirman Said stated after a one-on-one meeting between President Jokowi's officials and several Chevron executives at the Blair House that GE is one of the companies that had been operating in Indonesia since a long time.
"They (the company) have joint venture firms with the Indonesian state-owned electricity company PLN. They will continue to invest in Indonesia, particularly to develop projects to generate 35 thousand megawatts (MW) of electricity," Sudirman remarked.
He said during the meeting with Jokowi, the GE executives were led by Vice Chairman of GE John Rice. They expressed their company's interest and commitment to continue investment in Indonesia.
"There are several concrete projects, including the development of mobile power plants, with a combined capacity of 25 thousand MW, which could be installed in several regions," the minister revealed.***3***(A014/INE)(T.A014/B/BESSR/A. Abdussalam) 27-10-2015 22:11:0 |
I use Ideals virtual data room for M&A deals. It really very simple to implement deal via this room.
BalasHapus