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Indonesia, China sign economic deals worth over 23 billion USD

Indonesia and China have signed five cooperation contracts worth 23.3 billion USD under the Silk Road Economic Belt and 21st Century Maritime Silk Road initiatives, according to Indonesia’s Antara news agency.

The contracts cover the construction of a 17.8 billion USD hydropower plant on Kayan River, a 2 billion USD hydropower plant in Kayan, North Kalimantan, a 1.6 billion USD power plant in Bali, a 1.2 billion USD steel smelter, and the development of a 700 million USD industry for converting dimethyl ethercoal into gas.

Indonesia’s Coordinating Minister for Maritime Affairs Panjaitan, who is the Indonesian President’s special envoy to establish strategic cooperation with China, highlighted the importance of encouraging business relations between the two countries.

The cooperation is not limited to between the governments but also covers companies and groups of the two nations, he added.

Panjaitan said countries in general and Indonesia in particular should seize opportunities to increase investment, create more jobs, and boost economic growth.

During bilateral talks with Panjaitan, Chinese Vice Trade Minister Gao Yan highlighted potential areas of cooperation with Indonesia including the development of infrastructure, railways, toll roads, automobile production, real estate, and power plants.

Earlier on April 12, Indonesia and China signed an agreement to develop a multi-functional laboratory for a high-temperature gas-cooled reactor.

The two countries also inked two memoranda of understanding on the development of electric vehicles and the construction of Tanah Kuning Mangkupadi industrial park in northern Kalimantan.