Indonesia Offers US$13B Infrastructure Projects to Chinese’s Investors

Deputy of Investment Planning of BKPM Tamba Hutapea (second from right) after delivering the exposure in Market Sounding II Project of Government Multifunction Satellite Project at BKPM office, Jakarta on Wednesday (06/06) - Photo by BKPM

JAKARTA (TheInsiderStories) – Indonesian Investment Coordinating Board offered power and toll road projects with public private partnerships (PPP) schemes to 90 Chinese investor in Guangzhou on August 23, said the agency today. The total investment value of the infrastructure projects reached US$13.2 billion

As one of the biggest cities, Guangzhou was chosen because it has excellence as one of China’s logistics nodes that has many global companies in the field of infrastructure.
Investment Coordinating Board‘s Deputy for Investment Planning Tamba P. Hutapea said in an official statement on Monday (27/08), that the offered projects include several power plant projects with a total capacity of 1,885 Megawatt and a number of toll road projects.

Hutapea said the agency, the investment board targets Chinese’s investors because they show high interest in Indonesia’s infrastructure projects. Most of the interested investors are global companies that expand business in many countries with high technologies and financial capabilities.

Hutapea explained above the companies have expressed interest in participating project offered, especially the power plants, LRT, and industrial area projects. In fact, some of them are considering conducting an assessment to Indonesia in the near future to get more detailed information regarding the projects.

China ranked the third-largest foreign investment in Indonesia at $3.36 billion in 2017, significantly rise from US$2.66 billion in the previous year. The Chinese investment in the first quarter of this year reached $676.2 million, a 12.78 percent rise from $599.57 million in the same quarter of last year.

According to Hutapea, several entrepreneurs from China who were present came from various sectors including investment companies, construction, electricity generation infrastructure, finance, and representatives of Guangdong Province Government officials.

In addition, PT Penjamin Infrastruktur Indonesia also complements the facility information for PPP infrastructure projects by presenting guarantees that can be provided by the government.

Leading infrastructure companies from China included: CCCC Industrial Investment Holdings Co., Ltd., China Railway Guangzhou Engineering Bureau ChangDa Highway Engineering Co., Ltd. Group Co., Ltd., and Guangdong Shineng Electric Equipment Group Ltd.

“Some of these companies have expressed interest in participating by investing and implementing development from projects offered,” he added.
While the Consul General Gustanto said that in the midst of the current global economic situation, Chinese investors could take advantage of more investment opportunities in Indonesia.

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