BKPM cooperates with Chinese insurance firm to boost investment

Jakarta (ANTARA News) - Indonesias Investment Coordinating Board (BKPM) has worked in cooperation with China Export and Credit Insurance Corporation (Sinosure) to increase Chinese investment in Indonesia.

The cooperation to promote direct investment was signed by BKPM deputy of investment controlling and implementation Azhar Lubis and Sinosure Vice President Zha Weimin here on Tuesday.

Sinosure is a Chinese state-owned insurance company that provides insurance and loans for trade and direct investment.

"Under the agreement, BKPM and Sinosure will cooperate to provide information and hold a direct meeting with clients who are keen to invest in Indonesia. Thus, BKPM can get potential investors with financial support," Azhar stated.

The cooperation with the largest Chinese financial institution would become a strategic move to promote investment in Indonesia.

It would also help investors to materialize their investment and trade in the country, he added.

Azhar admitted that many Chinese investors have faced financial obstacles.

"Many investors could not get financial support. We will help in connecting them with Sinosure," he assured.

Meanwhile, Zha Weimin asserted that the agreement is expected to eliminate hindrance in Chinese investment funding to Indonesia.

"We understand the importance of this cooperation. We are ready to share information and hold business meeting with BKPM," Zha remarked.

A data of BKPM showed that Chinese investment in Indonesia during the past five years has ranked seventh largest with a total investment of US$4.53 billion.

In 2016, the investment jumped almost thrice higher to $2.6 billion from $628 million of investment in 2015.

The government would boost foreign investment to Indonesia and target a total investment of $51 billion (Rp680 trillion) in 2017 and $65 billion (Rp865 trillion) in 2018.(*)