Shaanxi investors seeking Indonesian partners

Mustaqim Adamrah, The Jakarta Post, Jakarta | Fri, 11/28/2008 10:47 AM  

Fleeing fallout from the U.S.-led financial crisis, businesses in China's Shaanxi province are seeking ties with Indonesian partners to support their industrial projects, which are worth expected to be US$6.8 billion. 

More than 10 projects are being offered to Indonesian businesses, ranging from those in the infrastructure, agriculture, mining, manufacturing and electronic sectors, said first executive president of the Association of Indonesia-China Economic and Cultural Cooperation, Sudradjat D.P, on Thursday. 

The projects to be developed in Indonesia would produce raw materials and other unfinished products for factories in Shaanxi, he said. 

"Potential Shaanxi investment in Indonesia may reach over $1.3 billion to support the projects in Shaanxi," he said Thursday on the sidelines of a Shaanxi-ASEAN economic and trade cooperation forum. 

"A number of business deals are expected to be signed very soon during their (Shaanxi businessmen's) short trip." 

According to data from the Shaanxi administration, as of last year, investment in Shaanxi key projects stood at $399.05 million in agriculture, $268.85 million in auto parts, $155.64 million in electronics, $111.37 million in textiles and garments, $517.53 million in mining, $596.82 million in construction materials and $4.04 billion in chemical and energy. 

The Chinese government is encouraging investment in Shaanxi-based businesses as the global economic turndown has hammered the country's export-driven economy, said vice secretary-general of the Association of Indonesia-China Economic and Cultural Cooperation Gondo Soebedjo. 

He said the Chinese government had set up an investment board specifically to anticipate the impacts of the global crisis on the country. 

Indonesian Chinese Entrepreneur Association vice secretary-general Richard Tan said that at first, the Shaanxi delegation, which comprises more than 100 businessmen, would learn about trade opportunities with Indonesian traders. 

"Investment opportunities will become available automatically once the trades go smoothly," Richard said. 

In September, businesses from Indonesia and the Chinese province of Guangdong finalized 30 deals worth a total $597 million. 

According to data from the Guangdong Department of Foreign Trade and Economic Cooperation, the trade volume between Indonesia and the province reached $5.19 billion in 2007, 32.8 percent higher than in the previous year. 

The total trade volume between the two countries stood at $19 billion as of July. It is projected to reach $30 billion by 2010.