China Minsheng Investment: Build an industrial park in Indonesia
0 Comment(s)
Print
E-mail China Today, September 8, 2015
|
|
|
CMI CEO Li Huaizhen and Chairman Wu Mingli of the Indonesia China Business Council sign on March 27 the cooperative agreement in Beijing’s Great Hall of the People to build the CMI Indonesian Industrial Park. |
Jointly build Indonesian industrial park
Zhou Feng, Chinese ambassador to the Republic of Indonesia, spoke highly of the CMI Indonesian Industrial Park, hoping that it would become the landmark of China’s investment in Indonesia.
“Having taken the investment scale into consideration, CMI has collaborated with Chinese private companies. The idea of an industrial park originates in the Korean and Japanese experience. CMI shoulders the responsibility of helping private enterprises open up the global market with three factors in mind: the scale effect, the formation of an industrial chain, and the functional development of the industrial park,” Li Huaizhen said. Currently, US $5 billion has been assigned to four programs–steel, cement, nickel mining, and a port.
“The steel project will be the most rapid, entailing an investment of US $1.6 billion to complete over two phases, with an annual production of three million tons in each phase. In fact, six million tons of steel annually would be close to the current total steel production in Indonesia,” Li Huaizhen said.
CMI is a combination of 59 private enterprise stakeholders, according to Li Huaizhen. Before the establishment of the Indonesian Industrial Park, all stakeholders signed agreements authorizing CMI to negotiate with Indonesia. CMI has also had other cooperative partners. For example, it collaborated with a native private enterprise that had carried out a four-year investigation of the Indonesian market and formed a relatively mature investment plan.
To strengthen the competency of steel production and port construction, CMI has considered the initiative proposed by President Xi Jinping on the joint construction of the “21st Century Maritime Silk Road” and President Joko Widodo’s aim “to develop maritime economy and rebuild Indonesia into maritime power.”
The Indonesian English-language daily newspaper The Jakarta Post recently reported that the Indonesian government paid great attention to infrastructure construction based on a maritime approach. As a main support of maritime transportation and connectivity, the shipbuilding industry will become the Indonesian government’s main field of development.
Executive Chairman Xu Ningning of China-ASEAN Business Council (CABC) has a broad span of communication with Indonesian Trade Ministry and Foreign Affairs Ministry dignitaries. He concludes that Indonesia is hampered by a weak steel industry and an absence of completed accessories and raw materials. Consequently its shipbuilding industry runs at extremely high cost. China’s shipbuilding industry, on the other hand, has a world renowned reputation whose competitive power comprehensively integrates into the Indonesian market.
In the future, CMI will continue to combine its development goals with the major challenges to the economic and industrial development that the Indonesian government is striving to push forward. It will bring in such projects as coal chemical industry, electrolytic aluminum, steel, electric power generation, cement, infrastructure construction, harbors, ocean-going fishing, the Internet, corporate airplane trusteeship, and helicopter production and operations.
“Most areas in Indonesia have access to the Internet, but its broadband network is smaller and slower. The aim of the government in the 2015-2019 plan is to build a perfect network for cities, counties, and districts. Indonesia now has 260 million mobile terminals. It is predicted that 3G users will increase 45 percent in 2015,” Li Huaizhen said, adding that he believes there is a huge market demand and great potential for Chinese enterprises to create opportunities. Joining hands to reach win-win result is the common pursuit of both China and Indonesia.
Go to Forum >>0 Comment(s)