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fter historically low investment realization in the past, Chinese investors have committed to a number of plans to invest in Indonesia, with officials and business players saying that this time, it'€™s for real.

From late October up to the present, at least five Chinese firms have conveyed strong commitment to pouring US$4.6 billion into labor intensive industries, infrastructure development and other areas, according to the Investment Coordinating Board (BKPM).

The figure is just a small part of the overall investment interest worth over $45 billion unofficially expressed by Chinese companies over the same period.

However, questions still linger over whether Indonesia can count on these commitments, because in the past, realization of Chinese-backed investment has been very low. Only $1.8 billion, or 7 percent, of overall planned investment of $24.27 billion between 2005 and 2014 has been put into concrete projects, the board'€™s data shows.

BKPM chief Franky Sibarani attributed the situation largely to the lack of understanding of Chinese firms about investing in Indonesia, a problem that the board was trying to address.

 '€œWith its sizeable economy and financial capacity, basically China has huge potential to invest in Indonesia. We'€™re making efforts to overcome obstacles faced by the investors,'€ said Franky.

As for private investment, the board is currently collaborating with Chinese banks to hold business forums to promote Indonesia'€™s potentials as a top investment destination for their clients.

At a recent event, BKPM marketing staff met with 40 Chinese firms '€” a few of which have a presence abroad including in Indonesia '€” and received a favorable response, with some of them expressing interest, under the facilitation of Bank of China, according to Franky. Interests include the development of industrial estates, tire and cement factories, smelters, harbors and other infrastructure.

In terms of government-to-government plans, the State-Owned Enterprises (SOEs) Ministry is cooperating with China'€™s National Development and Research Center to select Chinese state-owned firms that may jointly set up ventures with Indonesian counterparts.

The head of the permanent committee on China at the Indonesian Chamber of Commerce and Industry (Kadin), Tahir, said that ahead of the ASEAN single market, Indonesia might serve as a favorable investment destination for China compared with its Southeast Asia peers because of good bilateral relations and other aspects, such as competitive labor costs.

'€œI think China has no better choice than Indonesia as a site for investment in the region. This is an opportunity that we must grab,'€ he said.

Concrete investment, nevertheless, could be expected more from China'€™s state-owned enterprises, which have far more experience in international trade and business than private Chinese firms, and this might be mostly channeled into infrastructure projects and smelters and less into the manufacturing sector, Tahir added.

China led the establishment of the Asian Infrastructure Investment Bank (AIIB), which has committed to providing loans for numerous infrastructure projects in developing countries in Asia Pacific.

The subscribed capital for the financial institution will initially amount to $50 billion and later will be raised to $100 billion.

Under the new administration, Indonesia has expressed commitment to boosting connectivity across its 17,000 islands and spurring massive development of much-needed infrastructure that may need $460 billion in investment.

During the visit of President Joko '€œJokowi'€ Widodo a few months ago, Chinese firms sealed business agreements with Indonesian counterparts to invest $63.40 billion in various infrastructure projects comprising power plants, seaports, telecommunications networks and railways.