More Chinese firms to invest in West Java
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The Chinese government has pledged to invest in industries — particularly energy, food processing and textiles — in West Java, to build a stronger partnership between the country and the province.
West Java Governor Ahmad Heryawan said Chinese companies had already built power plants in Indramayu, Cirebon and Pelabuhan Ratu.
“This is part of the national project to produce 10,000 megawatts of electricity,” said Heryawan after a meeting with Chinese Ambassador to Indonesia Liu Jianchao at the Gedung Sate in Bandung, on Friday.
Sinohydro Corp, a state-owned Chinese corporation, has already taken part in the Jatigede Dam project. The dam, expected to produce at least 110 megawatts of electricity, is due to be completed by 2014.
During the meeting, Heryawan suggested a toll road linking Cileunyi, Sumedang and Dawuan.“They also want to contribute to the agribusiness and food processing sectors,” he added.
Liu said that the partnership between the Chinese government and West Java administration had been going very well for the last decade.
“There is great potential for cooperation between China, local provinces and West Java. We are now very successful in a number of infrastructure projects in West Java - the dam, power plant, express way - and also the economic zone that has been set up by China,” Liu said, adding that West Java had great potential in textiles and agriculture industries.
Liu said the Chinese government was interested in taking a part in the international airport plan for Kertajati, Majalengka regency.
Liu strongly encouraged Chinese companies investing in local projects to employ local people.
“If Chinese companies employ too many workers from China costs will be high. So, the idea is to employ local people,” Liu said.
“Through dialogue we will organize a forum where business people can meet and we can build a better understanding,” he added.
Head of West Java’s Investment Coordinating Board Agus Gustiar said that so far there had been no agreement on the amount of money to be invested by the Chinese government.
“Speeding up economic development starts with building roads. Roads are needed to distribute goods,” Agus said, adding that the projects were part of the Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI).
The Chinese government has been intensively expanding business in a number of provinces and signed numerous agreements with Indonesian companies.
State-owned China Hi-Tech Group plans to invest US$6 billion in southern Central Java to develop a container port and integrated industrial zones at a number of locations in Wonogiri regency.
The Chinese company will cooperate with Sukoharjo-based PT Sritex textile company as a main partner with the former developing cement factories and the latter a textile factory in the planned industrial zone.
A project between Indonesia’s PT Daya Anugrah Semesta and China’s Henan Xibao Metallurgy Materials Group will see investment in Indonesia’s nickel smelting and stainless steel. Another project concerns cement production in West Papua and South Kalimantan provinces.