RI-Indian bizmen`s cooperation worth 15.12 billion dollars

Antara News, Tue, January 25 2011

New Delhi (ANTARA News) - Indonesian and Indian businessmen have signed 18 memoranda of understanding (MoUs) on investments and development projects worth 15.12 billion US dollars.

The MoUs were signed following a bilateral business forum attended by President Susilo Bambang Yudhoyono and about 500 Indonesian businessmen at Taj Palace Hotel`s Durbar Hall here Tuesday.

The 18 MoUs included investment in important development projects like railway tracks, airports, power plants, shipyards, information technology, fertilizer plants, metal industries, and special economic zones.

The Indian enterprises that signed the MoUs included India GVK, Tata Power, Reliance, ICVL, Adani Group, Trimex Group, and Pipavav Shipyars.

Their Indonesian partners which signed the MoUs included PT Bukit Asam, PT Pupuk Sriwijaya, PT Angkasa Pura I, PT Multipolar, PT PAL, PT PLN, PT Mega Urip Pesona, and PT Eastern Infrastructure International.

The MoUs also involved the provincial administrations of South Sumatra, Jambi, and East Kalimantan, and the district administrations of Kendal and Buleleng.

According to Head of thee Investment Coordinating Board (BKPM) Gita Wirjawan, the MoUs were fixed and would immediately be implemented because the Indian companies had conducted the relevant surveys in Indonesia.

"All will be followed up with the signing of joint-venture agreements. They have actually worked in the past few months."

"They have even visited the heads of district and governor`s offices, BKPM office, and related ministries. So, this is real and will be realized," Gita Wirjawan said.

The investment cooperation between the two business communities would be implemented in rather neglected areas in which the majority of the MoUs on infrastructure and strategic industry projects were located outside Java, he said.

Gita said that about 60 - 70 percent of total worth of the investment had been pledged by four Indian tycoons, namely Ambani Group, Tata Group, Trimex Group, and GVK Group.

Ambani Group wanted to invest in infrastructure and entertainment, while GVK Group offered infrastructure development projects as building a health center for very poor people.

Then, Trimex Group offered smelter and railway track development projects, while Tata Group was interested in investment in the educational, automotive, and infrastructure sectors.

In response to this investment cooperation, Minister of Industry MS Hidayat said President Yudhoyono had asked Indonesia to build partnership with Indian automotive industries as Tata Group for the manufacture of vehicles that could serve inter-village and inter-district routes outside Java island.

"The President pays special attention to automotive production, particularly passenger/cargo vehicles. We want to talk about this," he said.

One such vehicle was sold Rp60 million in India, he said adding that the Indian automotive industries were also interested in building factories in Indonesia.

President Yudhoyono and First Lady Ani Yudhoyono would be in India from January 24 to 26, 2011. This is his second state visit to the South Asian giant since November 2005.

After India, the Indonesian head of state is scheduled to attend the World Economic Forum`s annual meeting in Davos, Switzerland.

The 2011 World Economic Forum would be held on January 26 - 30. Before going to Davos, President Yudhoyono would first make a state visit to India to attend the country`s national day.