JAKARTA (TheInsiderStories) - Indonesia’s President Joko Widodo appreciates the visit of France President Francois Hollande who brings along 40 business top executives and expressed commitment to invest up to US$2.6 billion in various projects in Indonesia, including renewable energy, infrastructure and retail sector.
“I have just hold a bilateral meeting with President Hollande and we agree to strengthen the commitment of the two countries in improving the good relation between the two nations,” President Joko Widodo told reporters at the State Palace when holding a joint press conference. President Joko Widodo and his counterpart Hollande witnessed a number of signing agreements to develop those projects.
The President also appreciated the support of the French government in opposing the discriminatory acts against Indonesia’s palm oil product exports to EU. He said the sustainability of palm oil in Indonesia is a priority of the government of Indonesia.
President Joko Widodo welcome expansion of the bilateral trade to also including cooperation in maritime sector as well as creative economy. Indonesia has asked the French government to cooperate in combating illegal fishing and considering it as a transnational organized crime.
In creative economy, both parties agreed to strengthen cooperation in cinematography, film, fashion and digital economy.
ENGIE and Renewables
Separately, ENGIE Group, a leading global energy player of France, has inked an agreement with Indonesian partner Sugar Group to invest up to US$1 billion in the next five years to develop various renewable projects in Sumatera and eastern Indonesia.
Under the deal, both parties agreed to develop solar PV (photo voltaik) power generation and biomass power plant with total capacity of 500 MW in Sumatera Island and eastern part of Indonesia.
Among projects to be developed are solar panel park in Sumatera and eastern Indonesia with capacity of 300 MW. Of these, the two parties will develop 100 MW capacity of solar PV park in Lampung with capacity of 140 MW.
Both parties also agreed to develop biomass power plant with capacity of 200 MW, utilizing Sugar Group’s sugar cane waste. These projects will help the Indonesian government to attain renewable energy target and reduce pollution.
In addition, ENGIE and Electric Vine Industries plan to develop, finance, develop and operate smart solar PV grid which will provide electricity for 24 hours in 300 villages in Papua Province within 20 years. With this project, 2.5 million people of Papua will enjoy a reliable clean energy. In this project, ENGIE and Electric Vine will invest up to US$240 million in the next five years.
In addition, ENGIE and Indonesia’s PT Arya Watala Capital are committed to invest up to US$15 million in the next three years to develop solar power with capacity of 10 MW in East Nusa Tenggara province, which will be located in West Timor, Flores and Sumba. (*)