BUMN Ministry succeeds in winning investment commitments worth US$13.5 billion

BUMN Ministry succeeds in winning investment commitments worth  US$13.5 billion

A number of Indonesian officials posed a picture during the Infrastructure Investment Forum held as part of the annual meetings of the International Monetary Fund and the World Bank in Nusa Dua Bali, Oct 8-14, 2018. ANTARA FOTO/ICom/AM IMF-WBG/Jefri Tarigan/kye

Nusa Dua, Bali (ANTARA News) - The State Enterprises (BUMN) Ministry has succeeded in winning a commitment of foreign companies to invest US$13.5 billion in projects offered by the Ministry in the country, a Ministry official has said.

It could be more as the figure was based only on agreements reached at the Infrastructure Investment Forum held as part of events of the annual meeting of the International Monetary Fund and the World Bank now underway here, deputy for Infrastructure and Business expansion of the BUMN Ministry Aloysius Kiik Ro said here on Friday.

Aloysius said part of the agreements constitutes a conclusion of negotiations already in process over the past several years but negotiation on the occasion of the IMF-WB meeting gave the investors confidence to sign their investment commitment.

In addition to the agreement in the Infrastructure Investment Forum, a number of deals had also been signed as a result of the exhibition of "Pavilion Indonesia" held on the sideline of the IMF-WB annual meeting . The exhibition has recorded transactions worth Rp55 million per day on the products of micro and small and medium enterprises, Aloysius said.

"The largest investment pledges was received by PT Pertamina valued at US$6.5 billion from Taiwanese oil and gas company , CPC Corporation," he said.

Pertamina and CPC will cooperate to build a large factory to produce petrochemical basic materials from crude oil, he said, adding the project would save the country from having to import petrochemical basic materials worth US$2.4 billion a year.

"It will cover half of the domestic requirement until now is still imported. In addition the country will gain from the opening of new jobs," he said.

Other state companies winning commitment from foreign companies are Aneka Tambang (Antam) and Inalum with investment commitment from China`s Aluminium Corporation of China Limited (Chalco) to build a factory in Mempawah, West Kalimantan valued at US$850 million .

"Antam, Inalum and Chalco are to build a factory to process bauxite into alumina with a capacity of 1 million tons per year. So far the country has been entirely dependent on import for alumina. Therefore, the construction of the factory would save the country US$650 million in imports per year," he said.

The BUMN Ministry has offered a number of projects to foreign investors taking advantage of the annual meeting of IMF-WB.
Reporting by Edy M Yakub
Editing by A Saragih

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