Chinese enterprises plan to build carbon steel plant and powder station in Indonesia
2017-06-20 16:22:26 [Print]
The Minister of Industry Airlangga Hartarto recently stated that Chinese enterprises would support the construction of the Morowali industrial park in Central Sumatra Province. According to the statement, two China-based companies --Tsingshan Group and Delong Group--and Indonesian corporation, PT Indonesia Morowali Industrial Park, inked a memorandum of understanding (MoU) to build a carbon steel factory with an annual capacity of 3.5 million tons and a total investment of USD1.63 billion in the Morowali industrial park. Apart from the steel plant, Tsingshan Group, PT Indonesia Morowali Industrial Park, and Bintang Delapan Group also signed a new agreement to construct a power plant with a capacity of 700 megawatts and a total investment of US650 million in the district. According to the minister, the partnership was part of a concrete step following a bilateral meeting between Indonesian President Joko Widodo and Chinese President Xi Jinping during the sidelines of the Belt and Road Forum for International Cooperation in Beijing held in May 2017. Indonesia appreciates the B2B cooperation model and hopes that cooperation will deepen the structural reform in Indonesia and increase industrial competitiveness. The data from the Ministry of Industry show that China is the third largest investor in Indonesia. In 2016, China invested in 594 projects with a total investment of USD2 billion, up by 839% compared with that in 2015. During the period from 2014 to 2016, the fields that China mainly invested in included metal, machinery, electronics, non-metallic minerals, chemicals, pharmaceuticals and food.
