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IIPC Sydney, Australia

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Melbourne, May 10, 2016
Several Australian Companies interested to invest in Indonesia

Upon returning from a visit to Australia, the Head of the Investment Coordinating Board (BKPM), Franky Sibarani, received a positive signal from Australian Business. At least 12 companies from various fields expressed their interest to invest in Indonesia in a diverse business fields, ranging from farms and cattle farming, soft drinks, hydroelectricity, retail building materials to shipbuilding and dredging services.

Three of them have even been demonstrated further commitment.

“The soft drink industry based in Australia, already committed their investment of the expansion plan for US $ 53 million (equivalent to Rp 715 billion) in Indonesia. The livestock and cattle farming industry also, already obtained permission principle US $ 10 million (equivalent to Rp 135 billion), as well as the telecommunications sector that support e-health applications and services has expanded their investment the US $ 10 million by utilizing the services of investment permits three hours, “said Franky Sibarani told the media on Tuesday (10/6).

While nine other companies, so far only at the stage of submission of interest.

“We would then do more intensive communication by BKPM representative in Sydney, the Embassy, Consulate General in Melbourne, Sydney Consulate General, Consulate General in Perth and Darwin KRI submitted that the investment interest could lead to a commitment to future investment can be realized,” said Head of BKPM.

Franky said, among nine companies that have shown interest in these, one of the company’s hydroelectric plants which have experience of cooperation with businessmen from China.

“The value of planned investment for hydropower plants to be built is reaching US $ 100 million (or equivalent to Rp 13.5 trillion),” he said in a release received Australia Plus.

Although the majority of investors are still at the stage of submission of interest, but it has given a fresh breeze in the investment climate in Indonesia.

Indonesian Ambassador to Australia, Najib Riphat Kesoema, who accompanied the Head of BKPM throughout the visit in Melbourne said, the business activities conducted prospective Australian investors are expected to contribute positively to the development of Indonesia.

“For example for shipyards and port investor is expected to encourage the development of large and small ports in eastern Indonesia so that the good cooperation that has been fostered by the port of Townsville in Queensland can continue to be developed,” he explained.

This is reinforced by the statement of the Head of BKPM mention that one of the prospective investors engaged in construction services in fact has thrown its seriousness in contributing to the Indonesian maritime world, by building a shipbuilding, ship repair and dredging service.

“The investment value for dredging services is to bring one dredger worth US $ 5 million (or the equivalent of US $ 67.5 billion) and plans they will enter the ship 3-5. Estimated so that investment plans for dredging and construction services and maintenance industry dredges around US $ 16-30 million (equivalent to Rp 216-405 billion), “said Franky Sibarani.

Head of BKPM has just completed a visit to Australia and New Zealand. Australia has been chosen as one of the country to be visited by the Chairman, because this close neighbor country is a source of potential investors for Indonesia.

BKPM data reveal, during the year 2010-2015, an investment of US $ 2.1 billion (equivalent to Rp 28.35 trillion) from the mining, basic chemicals and infrastructure Australia into Indonesia.

And this year, the investment rate in the first trimester (January-March) of Australia in 2016 was US $ 59.98 million (equivalent to Rp 809 billion), which consists of 131 investment projects with employment reaching 5,070 people.

Source: Australia Plus, 11 May


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