Indonesia, China sign $23.3b in contracts

[Nike]

Indonesia, China sign $23.3b in contracts

• News Desk
  The Jakarta Post
  

Jakarta | Sat, April 14, 2018 | 02:30 pm

Closer ties: Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan (second left) talks with China Prime Minister Li Keqiang (second right) on the sidelines of the Belt and Road Trade and Investment Forum in Beijing, China, on April 12. (Courtesy of the Coordinating Maritime Affairs Ministry/File)

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Indonesia and China have signed five contracts worth US$23.3 billion as part of China’s Belt and Road Initiative, an ambitious road, rail and construction project spanning dozens of countries across Asia, Africa and Europe.

The contract, signed in Beijing late on Friday, was signed by companies from both countries and consists of a $2 billion hydropower plant in Kayan, North Kalimantan, a $700 million contract to develop facilities to convert coal to dimethyl-ether and a $17.8 billion joint venture to build a hydropower plant on the Kayan river.

Additionally, the contract includes a $1.6 billion joint venture to build a power plant in Bali and $1.2 billion to develop a steel smelter.

“We want to see continuous cooperation between investors from both countries, not just between governments,” said Coordinating Maritime Affairs Minister Luhut Pandjaitan, who was present during the signing of the contract, as quoted by Antara news agency.

The two countries also signed a memorandum of understanding on the development of Tanah Kuning Mangkupadi Industrial Park in northern Kalimantan and on the development of electric vehicles.

Luhut said Indonesia would seek further cooperation with China on some of Indonesia’s economic corridors, including those in North Sumatra, North Kalimantan, North Sulawesi and Bali, with an investment value of $51.9 billion.

Chinese deputy commerce minister Gao Yan during a bilateral meeting with Luhut said she would have further discussions with relevant institutions on the latter’s offer for an agreement between leaders of both countries. (dwa)

http://www.thejakartapost.com/news/2018/04/14/indonesia-china-sign-23-3b-in-contracts.html

 

[AZADPAKISTAN2009]

Nice to see two Euro-Asian cuntries coming together for preservation of free world

 

[Huan]

Is Indonesia leaning towards China for real or 50-50 between the US and China?

 

[NEKONEKO]

Is Indonesia leaning towards China for real or 50-50 between the US and China?

IMHO; While Indonesia try to be neutral but sometimes a little bit leaning towards someone,like in the past (uni soviet - soekarno, us - soeharto).
But now indonesia is more neutrals.
When indonesia try to get the Su35 the US try to stall the purchase but its done now, then indonesia want to get another new fighter.

And talking about investation; others not as aggressive as china, even if jakarta dont want rely too much to beijing, washington not that ambitious as beijing.
Its not like purchasing weapon, when indonesia can try to balance it.

Is indonesia leaning towards china? no.*
But man, thats a lot of $ billions.

*economically: a little, but overall nah.

 

[Logam42]

Is Indonesia leaning towards China for real or 50-50 between the US and China?

Policy-wise Indonesia has long maintained an ideology of "free & active", or "non-alignment".

Apart from the somewhat selfish (if accurate) belief that being opportunistic and exploiting the US-China rivalry is for Indonesia's ultimate benefit, there's also the general belief that as the biggest economy in ASEAN (about ~40% of Total ASEAN GDP) the simple act of favouring 1 super-power will be a reason for escalation by the other.

While economic pragmatism will mean that economy-wise, Indonesia will lean more to China because it's becoming more economically dominant, Indonesia will never outright take sides unless BAD THINGS happen. So even if Indonesia starts taking more Chinese investment (and it'll have some spillover effect to political stances), it'll still accept American investment and would respect its political leaders.

 

[meis]

Welcome abroad the train, Indonesia. We know you, Indonesia, is smarter than India.