The Indonesia Investment Coordinating Board (BKPM) and state-owned China Export and Credit Insurance Corporation (Sinosure) have entered an agreement to increase Chinese investments in the Southeast Asian nation.
On Tuesday, the agreement was signed in Jakarta by BKPM deputy of investment controlling and implementation Azhar Lubis and Sinosure vice president Zha Weimin.
“Under the agreement, BKPM and Sinosure will cooperate to provide information and hold a direct meeting with clients who are keen to invest in Indonesia,” Azhar told Antara News. “Thus, BKPM can get potential investors with financial support.”
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He added that cooperating with one of the largest Chinese financial institutions would greatly help promote investment in Indonesia. It would also benefit the companies involved, making it easier to materialise their investment and trade deals.
According to Azhar, many Chinese investors were having a hard time entering Indonesia due to financial obstacles.
“Many investors could not get financial support. We will help in connecting them with Sinosure,” he said.
According to BKPM data, China was the seventh-largest foreign investor in Indonesia in the past five years, totalling US$4.53 billion. A large chunk of that came in 2016, where the US$2.6 billion in Chinese investments was almost triple that of 2015.
The Indonesian government has targeted a total of US$51 billion in foreign investments in 2017, and US$65 billion in 2018.
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