"The health sector has developed health services in the Special Economic Zone of Sanur Bali. In the Special Economic Zone, it is allowed to conduct clinical-trial research and allow foreign doctors to practice," Coordinating Minister Airlangga noted in a statement received in Jakarta on Tuesday.
In line with the global crises, including in the field of food and fertilizer, he also invited JBIC to finance it.
Governor Hayashi responded by strongly supporting investment in food and fertilizers for which the demand increases in line with the population growth.
However, this food and fertilizer requires a good supply chain. JBIC will strongly support new investments in food and fertilizer, Hayashi emphasized.
The minister also said that JBIC played a major role in Indonesia's economic development as a source of funding and advisor for various infrastructure projects.
JBIC annually conducted a survey of Japanese manufacturing companies doing business outside of Japan (Survey on Overseas Business Operations by Japanese Manufacturing Companies). However, in the 2021 survey results, from the "Promising Countries for Overseas Business," Indonesia was still ranked sixth or below Vietnam and Thailand.
Hence, Hartarto said, Indonesia was keen to be higher than Vietnam and Thailand.
This is the main reason why I meet with JBIC in Tokyo, he said.
JBIC has a forte, including financing in the energy sector.
Coordinating Minister Hartarto is keen that the JBIC become involved in several major infrastructure projects, such as the Tanjung Jati-B power plant, Jawa 1, and the Sarulla and Muara Laboh geothermal plants, as well as the Tangguh LNG project.
"These projects provide a much-needed source of energy for Indonesia's economic development," Hartarto affirmed.
In addition, the meeting discussed the Masela Project that would become increasingly strategic, especially after the Ukraine and Russia wars and due to the soaring gas demand of the G7 countries.
Gas is very important, as it can be used as raw material for ammonia, fertilizer.
Gas can also be used to build methanol, which is one of the blends for biofuels. The investment value of this project reaches US$19.85 billion.
However, the project has challenges ahead in the form of acceleration of energy transition, decarbonization requirements, and changes in the upstream oil and gas industry, so it needs to be evaluated and re-identified regarding the scope of the project.
In addition to discussing energy, the meeting discussed development of the automotive sector in Indonesia. In Indonesia, almost 90 percent of the principals are from Japan, and the JBIC has contributed to finance development of the automotive sector.
"We support the investment of Japanese companies in the manufacturing sector, especially in the automotive sector, because with the strong support of the Government of Indonesia so far, Japanese automotive has become much loved in Indonesia. JBIC will further encourage an increase in the value of existing investments," Hayashi affirmed.
On this occasion, Minister of Industry Agus Gumiwang hoped that there were large manufacturing industrial projects in Indonesia that JBIC could support.
Hayashi also welcomed Minister Agus' expectations and promised to continue to support Japanese companies' investment in the manufacturing industry, especially the automotive sector.
"Indonesia is a very strategic country. Indonesia is JBIC's most important customer, so I am very happy to be able to meet directly with Coordinating Minister Airlangga and Minister Agus. JBIC's support in the energy sector by supporting 11.6 GW of electricity is very helpful for Indonesia's economic development," JBIC Governor Hayashi noted.
"We are very pleased to hear that major projects in Indonesia will be a priority for JBIC. Indonesia, which has the largest population and economic size in the region, is very appropriate to be JBIC's top priority," Coordinating Minister Airlangga remarked.
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Translator: Kuntum K, Azis Kurmala
Editor: Rahmad Nasution
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