Indonesian provinces reach out to Russian investors
Vincent Lingga, The Jakarta Post, Moscow | Wed, 09/14/2011 8:00 AM\
Four Indonesian provincial governments competed with each other here on Monday to attract Russian investors to develop resource-based ventures and infrastructure in their respective regions.
North Sulawesi Governor Sinyo Harry Sarundajang offered railway, toll road and geothermal projects. North Sumatra acting governor Gatot Pujo Nugroho promoted toll road projects and palm oil-based industries. East Kalimantan Regional Secretary Irianto Lambire highlighted opportunities in coal-transportation, palm oil and cacao plantation projects, while the West Nusa Tenggara Regional Investment Board chief promoted seaweed and tourism-related businesses.
“The six governors in Sulawesi will meet next month in the North Sulawesi provincial capital of
Manado to discuss the development of the 1,200 kilometer Trans-Sulawesi railway project,” Sarundajang said at the Indonesia-Russia investment forum here on Monday.
He said the railway project is commercially feasible because it will connect the six provinces on the island of Sulawesi, which is naturally rich in mining and maritime resources, as well as agriculture and tourism opportunities.
“We are only 20 minutes by air from the famous resort island of Bali and we have tremendous investment opportunities in tourism-related industries. Yet more interestingly, our new Lombok international airport will soon open for wide-bodied jetliners,” the West Nusa Tenggara investment chief said.
North Sumatra’s acting governor Nugroho promoted railway and tollroad projects which will connect the main growth centers in that province, pointing out that several of the projects had been supported with feasibility studies.
East Kalimantan offers four railway-projects, mostly for transportation of coal and plantation commodities such as palm oil and rubber.
Indonesian Ambassador to Russia Hamid Awaluddin and Investment Coordinating Board (BKPM) chairman Gita Wirjawan, both of whom organized the business gathering, described it as a good start in promoting economic linkages between the two countries.
Gita said Russia, with its US$1.6 trillion economy and foreign reserves of more than $480 billion, has been a major provider of technology and financial capital to foreign countries, but its investment in Indonesia is almost negligible compared to most other countries.
“It is our fault that your investment in our country is still very small. We should have come here more often, knocking at your doors,” Gita said.
Over the past few years Gita has told journalists that Russia had set its eyes on investment opportunities in the Middle East, but the recent political turmoil in several countries in the region investors to seek other safer and more stable investment destinations.
“I think we now have many advantages to attract [Russian] investment to our country, especially because of the long [almost 60 year] history of our relations,” he added, citing the recent tax-incentive package launched in Jakarta for high-priority investment projects in infrastructure and natural resource-based ventures.
Russia itself seems to be very enthusiastic about developing broader economic relations with Southeast Asia, as it will for the first time take part as a full-fledged participant in the upcoming East Asian Economic Summit in Bali in mid-November.
Russian-Indonesian Business Council executive director Mikhail Kouritsyn also hailed the investment forum as a good start for Russian businesspeople in exploring and developing businesses in Indonesia.
“But this is only the first step on a very long journey,” Kouritsyn cautioned.
North Sulawesi Governor Sinyo Harry Sarundajang offered railway, toll road and geothermal projects. North Sumatra acting governor Gatot Pujo Nugroho promoted toll road projects and palm oil-based industries. East Kalimantan Regional Secretary Irianto Lambire highlighted opportunities in coal-transportation, palm oil and cacao plantation projects, while the West Nusa Tenggara Regional Investment Board chief promoted seaweed and tourism-related businesses.
“The six governors in Sulawesi will meet next month in the North Sulawesi provincial capital of
Manado to discuss the development of the 1,200 kilometer Trans-Sulawesi railway project,” Sarundajang said at the Indonesia-Russia investment forum here on Monday.
He said the railway project is commercially feasible because it will connect the six provinces on the island of Sulawesi, which is naturally rich in mining and maritime resources, as well as agriculture and tourism opportunities.
“We are only 20 minutes by air from the famous resort island of Bali and we have tremendous investment opportunities in tourism-related industries. Yet more interestingly, our new Lombok international airport will soon open for wide-bodied jetliners,” the West Nusa Tenggara investment chief said.
North Sumatra’s acting governor Nugroho promoted railway and tollroad projects which will connect the main growth centers in that province, pointing out that several of the projects had been supported with feasibility studies.
East Kalimantan offers four railway-projects, mostly for transportation of coal and plantation commodities such as palm oil and rubber.
Indonesian Ambassador to Russia Hamid Awaluddin and Investment Coordinating Board (BKPM) chairman Gita Wirjawan, both of whom organized the business gathering, described it as a good start in promoting economic linkages between the two countries.
Gita said Russia, with its US$1.6 trillion economy and foreign reserves of more than $480 billion, has been a major provider of technology and financial capital to foreign countries, but its investment in Indonesia is almost negligible compared to most other countries.
“It is our fault that your investment in our country is still very small. We should have come here more often, knocking at your doors,” Gita said.
Over the past few years Gita has told journalists that Russia had set its eyes on investment opportunities in the Middle East, but the recent political turmoil in several countries in the region investors to seek other safer and more stable investment destinations.
“I think we now have many advantages to attract [Russian] investment to our country, especially because of the long [almost 60 year] history of our relations,” he added, citing the recent tax-incentive package launched in Jakarta for high-priority investment projects in infrastructure and natural resource-based ventures.
Russia itself seems to be very enthusiastic about developing broader economic relations with Southeast Asia, as it will for the first time take part as a full-fledged participant in the upcoming East Asian Economic Summit in Bali in mid-November.
Russian-Indonesian Business Council executive director Mikhail Kouritsyn also hailed the investment forum as a good start for Russian businesspeople in exploring and developing businesses in Indonesia.
“But this is only the first step on a very long journey,” Kouritsyn cautioned.
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