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China to invest $20 billion in Indonesia

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  • China to invest $20 billion in Indonesia

    http://www.businessweek.com/ap/finan...e_down&chan=db


    SEP. 1 2:28 A.M. ET China signed agreements to invest $20 billion in Indonesia to build scores of electricity, telecommunications and other infrastructure projects over the next 20 years, a news report said Thursday.

    Vice President Jusuf Kalla also said the rupiah's recent depreciation -- the currency fell to a four-year low against the U.S. dollar earlier this week -- offered the Chinese an opportunity to get more for their money.

    "There is now a good opportunity for Chinese businessmen to invest in Indonesia due to our favorable and competitive exchange rate," Kalla said on a visit to China, according to The Jakarta Post. "You can buy land and invest in machinery cheaper than before."

    SEP. 1 2:28 A.M. ET China signed agreements to invest $20 billion in Indonesia to build scores of electricity, telecommunications and other infrastructure projects over the next 20 years, a news report said Thursday.

    Vice President Jusuf Kalla also said the rupiah's recent depreciation -- the currency fell to a four-year low against the U.S. dollar earlier this week -- offered the Chinese an opportunity to get more for their money.

    "There is now a good opportunity for Chinese businessmen to invest in Indonesia due to our favorable and competitive exchange rate," Kalla said on a visit to China, according to The Jakarta Post. "You can buy land and invest in machinery cheaper than before."

    The two sides signed six memorandums of understanding and four agreements involving Indonesian state enterprises and their Chinese counterparts in many projects including gas transmission, electricity, telecommunication, mining, housing development and the medical sector.
    Indonesia badly needs foreign investment to keep the economy growing and produce the jobs for the millions of new graduates.

    It has struggled to attract foreign investment in recent years, in the face of widespread corruption and government red tape.

    But a weakening rupiah and a more stable government has increased the country's prospects and helped foreign investment jump 74 percent in the first seven months of this year.
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