Indonesia, China sign US$23.3 billion cooperation contracts under Belt and Road

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Indonesia, China sign US$23.3 billion cooperation contracts under Belt and Road
Reporter: Suharto 
14th April 2018

https://en.antaranews.com/news/115354/indonesia-china-sign-us233-billion-cooperation-contracts-under-belt-and-road

Jakarta, (ANTARA News) - Indonesia and China have signed five cooperation contracts worth US$23.3 billion under the Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives.

The cooperation contracts signed by the two countries` companies in Beijing on Friday cover the construction of a $2 billion hydropower plant in Kayan, North Kalimantan; the development of a $700 million industry for converting dimethyl ethercoal into gas; and the construction of a $17.8 billion hydropower plant on Kayan River.

Other contracts cover the development of a $1.6 billion power plant in Bali and the construction of a $1.2 billion steel smelter.

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"We want to see continued cooperation not only between the governments but also investors of the two countries," Coordinating Minister for Maritime Affairs Panjaitan noted in a press statement released on Friday.

Both nations also signed two memoranda of understanding (MoUs) on the development of electric cars and motorcycles as well as the construction of the Tanah Kuning Mangkupadi Industrial Park in North Kalimantan.

As the Indonesian president`s special envoy to establish strategic cooperation with China, Panjaitan highlighted the importance of encouraging business relations between both nations in line with the national interests.

"We must be smart (as) all (countries are eying opportunities). It is a matter of being smart to eye opportunities to derive more benefits," he pointed out.

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Indonesia wants BRI projects to be in line with national development plan, no government debt
PUBLISHED APR 25, 2019, 5:00 PM SGT

https://www.straitstimes.com/asia/se-asia/indonesia-wants-bri-projects-to-be-in-line-with-national-development-plan-no-government

JAKARTA - Indonesia has said that projects under China's Belt and Road Initiative should be in line with its own national development strategy, be private sector-driven and not add to government debt.

These points would be emphasised in a speech that Vice-President Jusuf Kalla would deliver at the second Belt and Road Forum in Beijing, Indonesian Foreign Affairs Ministry spokesman Arrmanatha Nasir said in a media briefing in Jakarta on Thursday (April 25).

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"From the beginning, Indonesia has stressed that BRI projects have to be private sector-driven, a business-to-business cooperation... so it's profit-oriented. If it won't be profitable, it should not proceed. If there is any debt, it is a debt to the private sector," Mr Arrmanatha said.

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The Indonesian government has offered several strategic projects under the BRI, including a multibillion-dollar hydropower plant in North Kalimantan's Kayan river and an industrial park in North Sumatra.

Jakarta has refused to provide any government guarantee for the projects and opted instead to leave them to to the private sector, albeit mainly state-controlled corporations. This is unlike most BRI projects in other countries.

Many projects in Indonesia with strong Chinese government support have not been listed as BRI projects. These include the ongoing 150km Jakarta-Bandung high-speed rail project, the first in Indonesia, which is partially financed by the China Development Bank.

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