Indonesia, China sign economic deals worth over US$23 billion

15:54 | 20/04/2018 Cooperation

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, according to Indonesia’s Antara news agency.

The opening ceremony of Silk Road (Dunhuang) International Cultural Expo held for the first time in Dunhuang, Gansu Province, China in 2016 - Source: Antara

The contracts cover the construction of a US$17.8 billion hydropower plant on Kayan River, a US$2 billion hydropower plant in Kayan, North Kalimantan, a US$1.6 billion power plant in Bali, a US$1.2 billion steel smelter, and the development of a US$700 million industry for converting dimethyl ethercoal into gas.

Indonesia’s Coordinating Minister for Maritime Affairs Panjaitan, who is the Indonesian President’s special envoy to establish strategic cooperation with China, highlighted the importance of encouraging business relations between the two countries.

The cooperation is not limited to between the governments but also covers companies and groups of the two nations, he added.

Panjaitan said countries in general and Indonesia in particular should seize opportunities to increase investment, create more jobs, and boost economic growth.

During bilateral talks with Panjaitan, Chinese Vice Trade Minister Gao Yan highlighted potential areas of cooperation with Indonesia including the development of infrastructure, railways, toll roads, automobile production, real estate, and power plants.

Earlier on April 12, Indonesia and China signed an agreement to develop a multi-functional laboratory for a high-temperature gas-cooled reactor.

The two countries also inked two memoranda of understanding on the development of electric vehicles and the construction of Tanah Kuning Mangkupadi industrial park in northern Kalimantan.

Theo VNA