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

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The cooperation contracts signed by Indonesia and China 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.

“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.

The opportunities must be seized to increase investment, create more jobs, raise the national gross domestic product, and boost economic growth, he noted.

During bilateral talks with Panjaitan, Chinese Vice Trade Minister Gao Yan highlighted four potential areas of cooperation with Indonesia.

“We will cooperate with the related ministries to implement the agreement between the leaders of the two countries,” he stated.

The Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives encompass investment for the development of infrastructure, railway tracks, toll roads, automotive products, real estate, and power plants.

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