Three state-owned firms, PT Len Industri, PT Barata Indonesia, and PT Indonesia Kereta Api (INKA) are expanding their business to Africa after signed a contract with TSG Global Holdings to build a 200 Mega Watt peak (MWp) Solar Power Plant in Kinshasa, Congo - Photo by Lend Industri Office

JAKARTA (TheInsiderStories) – Three state-owned firms, PT Len Industri, PT Barata Indonesia, and PT Indonesia Kereta Api (INKA) are expanding their business to Africa after signed a contract with TSG Global Holdings to build a 200 Mega Watt peak (MWp) Solar Power Plant in Kinshasa, Congo. The project has a contract values of US$175 million

The companies will build the project built in the area of ​​around 300 hectares. As the initial stage, the fourth parties has plans to build 1,000 MWp power plant projects.

Last year, Indonesian Eximbank has signed an uncommitted framework agreement on a Bank Line Facility worth of $50 million with the Development Bank of the Central African States. The funds to support the infrastructure projects that will use the Indonesian contractor’ services in the Central African Economic and Monetary Community (CEMAC) countries.

CEMAC consists of six countries such as Congo, Gabon, Cameroon, the Central African Republic, Chad, and Equatorial Guinea. The collaboration was unveiled at Indonesia Africa Infrastructure Dialogue forum held in Bali.

To realize these projects, Indonesian Eximbank is collaborating with state-owned construction developer, PT Wijaya Karya Tbk (IDX: WIKA) and PT Dirgantara Indonesia, a state-run aircraft manufacturer. In this partnership, Eximbank is committed to supporting the WIKA’ project of $356 million.

The project is the construction of a bulk liquid terminal port in Zanzibar – Tanzania with values of $40 million. Then, a $250 million integrated business development project in Senegal. And social housing project worth $66 million in Pantai Gading.

The three infrastructure development projects in Africa are one form of service exports. The project’ business value can still increase because the total project value for the port in Zanzibar is $190 million, and the construction of flats in Pantai Gading is worth a total of $200 million.

While with Dirgantara, the agency signed an agreement which included working capital financing for the company, as well as buyer’ credit facilities for prospective customers of the company in the African Region to export of goods which can also be facilitated by the buyer’ credit scheme.

Indonesia, under the leadership of President Joko Widodo, wants to focus more on Africa to forge a strong economic partnership between the world’ biggest archipelagic nation and all 54 African countries. In April 2018, Indonesia launched the first-ever Indonesia – Africa Forum, which not only gave a new shape to the old and strong relations between them but also resulted in more than half a billion dollars of business deals in sectors of strategic industries, infrastructure financing, mining, textiles, aircraft maintenance, and trade.

No wonder Widodo’ administration has been consistently allocating a huge budget for infrastructure development since he assumed his post in 2014. For example, Indonesia has allocated Rp415 trillion ($28.42 billion) for infrastructure projects in 2019, a huge jump from Rp256.1 trillion in 2015.

Africa, is the second-fastest growing economy in the world after Asia, needs to build more roads, bridges, railway lines, airports, seaports, houses, apartment complexes, office buildings, power plants and water facilities to prosper more in the coming years. With its 1.32 billion people (2019 estimate), Africa offers many opportunities for Indonesia and its businesspeople. It is also the youngest continent as its present median age is just 19.4 years.

Like Indonesia, the continent is very rich in natural resources. Many countries in Africa have the potential to grow more than 5 percent in the next five years.

Len Industri is a pioneer of solar module manufacturers in Indonesia which has pioneered this business since 1985 and has applied it in various parts of Indonesia, such as solar trees, public street lighting, solar rooftops, solar based transceiver stations, centralized solar power plant , solar power plant hybrid, and others.

While, Barata Indonesia is a state firm that focuses on foundry and manufacturing companies, Engineering Procurement Construction, also machinery. And, INKA is a state-owned company that was founded on May 18, 1981 and focuses on railways, based in Madiun, East Java.

US$1: Rp14,600

Written by Editorial Staff, Email: theinsiderstories@gmail.com