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Sino-Indonesian Deals Inked

An Indonesian business delegation, headed by the country's President Susilo Bambang Yudhoyono, inked deals with Chinese enterprises in Beijing on Friday.

More than 10 Indonesian enterprises notched up five contracts and one Memorandum of Understanding with their Chinese counterparts.

The contracts, worth over US$4 billion, cover a wide range of co-operation and investment areas, from infrastructure and power plant construction to energy co-operation.

The largest among them is an Amended and Restated Memorandum of Agreement on Investment for a mine mouth power plant project in South Sumatra, Indonesia, which represents an investment of US$2 billion.

Susilo said Indonesia is rolling out the red carpet for more Chinese investors.

"The vital foundation of the Sino-Indonesian relationship lies in mutual understanding, respect, trust and friendship between governments and civil communities of the two sides," he said.

The Indonesian Government would move forward to facilitate the investment of foreign entrepreneurs, Susilo said.

He explained that Indonesia is improving its investment environment by adopting new laws and regulations as well as promoting social stability and law enforcement.

Meanwhile, a memorandum of understanding (MOU) on co-operative partnership was also signed by China Council for the Promotion of International Trade (CCPIT) and the Indonesian National Chamber of Commerce.

The MOU was expected to improve bilateral economic and trade communications, solidify co-operation between the two business associations and provide a platform for dialogue and negotiations between businesses of the two sides, Wan Jifei, chairman of CCPIT said.

As the two economies are complementary with each other, they are believed to enjoy great potential for developing a bilateral economic relationship.

At the moment China mainly exports electrical appliances, machinery, textile products and motorcycles to Indonesia, while it purchases natural resources, such as oil, natural gas, timber and paper from Indonesia.

"Besides the traditional areas of co-operation, we have great hopes for co-operation of transportation, telecommunications, electricity, minerals and timber industries," Wan said.

He said the free trade agreement (FTA) between China and the Association of Southeast Asian Nations (ASEAN) would add new impetus to Sino-Indonesian trade.

China's Vice-Premier Zeng Peiyan predicted that bilateral trade volume between China and Indonesia would reach US$15 billion this year, US$20 billion in 2006, and US$30 billion in 2010.

China is the fourth largest trade partner of Indonesia while Indonesia the 18th of China.

Bilateral trade between the two countries stood at US$13.48 billion last year, 31.8 per cent up from the previous year, according to statistics from China's Ministry of Commerce.

China's exports to Indonesia reached US$6.26 billion, reflecting an increase of 39.6 per cent year-on-year. The country's imports from Indonesia rose some 25.7 per cent to US$7.22 billion in 2004.

(China Daily August 1, 2005)

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Indonesian President Starts China Visit
Indonesia to Beef Up Ties with China
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