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        Business / Companies

        Chinese private companies to invest $5b in Indonesia

        (Xinhua) Updated: 2015-04-21 17:07

        JAKARTA - China's Minsheng Investment Corp, Ltd (CMI) announced Tuesday that it will lead a group of Chinese private companies to invest $5 billion in Indonesia.

        "This investment is a clear demonstration of CMI's commitment to supporting China and Indonesia's existing international agenda on overcoming economic challenges and providing investment for growth,"the group said in a press release during Tuesday's Asian African Business Summit.

        Li Huaizhen, CEO of CMI who is attending the business summit, said the group's key vision is to take "the full utilization of domestic and overseas resources and markets, and to pursue a globalization strategy".

        The $5 billion investment agreement is a strategic move for CMI, as it expands to overseas markets, said the press release, adding that the Chinese investor has partnered with the Indonesia China Business Council (ICBC) in its investments in Indonesia.

        "Indonesia is one of CMI's key focus markets when it comes to going global. The development stages of Indonesia,"Li was quoted by the press release as saying.

        "As the current market demands of Indonesia are being met by China's mature industrial sectors. This investment will stimulate the local economy by improving industries and creating jobs, while for China, the transfer of our capacity will show an improvement for Chinese companies."

        As part of the investment, CMI will guide dozens of Chinese private enterprises to construct a CMI Indonesia industrial parks.

        The park will bring in a wide array of industries and sectors to the Indonesian market including coal, chemical, electrolytic aluminium, iron and steel, power plant, cement, infrastructure, port, Internet and helicopter production and operation.

        The cooperation model of this project will bring advanced production technology, managerial know-how, capital and talent to Indonesia, helping boost the economic development through more jobs and considerable tax revenues for the Indonesian market.

        "Chinese private companies partnering with CMI enjoy strong comparative advantages from Indonesia in terms of technology, management and technique," Li said.

        "While Indonesia continues to produce more demand and projects as part of their strategy for infrastructure improvement, this is an opportunity for Chinese companies to comprehensively test their technological and managerial capabilities in another market."

        Besides the investments in industries to meet Indonesia's demand for infrastructure and industrial production, CMI is also committed to invest in the social areas in a bid to contribute to the balanced development of Indonesia, said the press release.

        "Besides the industrial parks, we will also invest in the social areas including education, healthcare and other social welfare projects, to make more contribution to the community and develop these areas into new-concept industrial towns," Li was quoted as saying.

        With a registered capital of approximately $8 billion, CMI is a leading private investment group established by 59 private enterprises in China.

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