Chinese Premier Wen to Visit Indonesia April 23-24 (Update1)
By Agus Suhana and Yoga Rusmana
April 5 (Bloomberg) — Chinese Premier Wen Jiabao plans to visit Indonesia April 23-24 to strengthen economic ties and boost investment in the Southeast Asian country, Indonesia’s Coordinating Minister for the Economy Hatta Rajasa said.
China wants to increase investment in Indonesia’s energy, infrastructure and mining sectors, Rajasa said after attending a meeting with President Susilo Bambang Yudhoyono and Chinese Commerce Minister Chen Deming today in Jakarta.
“Indonesia and China will form a working group to list potential investment opportunities in the country,” Rajasa told reporters after leaving the meeting at the presidential palace.
Indonesia, Southeast Asia’s biggest economy, is trying to attract investment to help boost growth to an average 6.6 percent over the next five years. Growth accelerated at a pace of 4.5 percent last year.
China and Indonesia will sign a bilateral economy and trade agreement during the visit, the Indonesian Ministry of Trade said in an e-mailed statement yesterday.
China will encourage its companies to import rubber, palm oil and mineral products from Indonesia, Chen told a luncheon in Jakarta on April 2, according to a statement on his ministry’s Web site.
The Indonesia Eximbank signed a $100 million trade and exports financing with the Export-Import Bank of China during a meeting between Indonesian Trade Minister Mari Pangestu and Chen in Yogyakarta on April 3, Indonesia’s trade ministry said. The Indonesia Eximbank is also completing an agreement with Industrial & Commercial Bank of China for $250 million in loans.
China and Indonesia agreed to maximize the allocation of $1.8 billion of preferential exports buyers’ credits and 1.8 billion yuan ($264 million) of government concessional loans to help finance several major infrastructure projects including a power plant in Parit Baru, West Kalimantan province and toll road in North Sumatra, the trade ministry said.
China’s investment in Indonesia totaled $265.5 million in the past four years mainly in infrastructure, according to trade ministry statement on its Web site dated April 1. Two-way trade more than doubled to $25.5 billion in 2009 from $12.5 billion in 2005.