Russia ready to realized investment of more than U.S. $ 7 billion in Indonesia

Interested in the field of energy, infrastructure, aerospace and defense industries

JAKARTA - The Russian delegation led by Deputy Prime Minister of Russia, Sergey Ivanov came to Indonesia is ready to realize the investment worth more than U.S. $ 7 billion. Together with the delegation, also attended the Russian businessmen.

Indonesia Cooperation with Russia is likely to increase after the delegations from both countries visit each other back. So far, Russia's interest in the infrastructure sector, energy, aerospace, defense industry, investment and finance, food technology and education.

Developing cooperation not only in the field of transportation, mining, and commerce, but also touching the infrastructure sector, agriculture, and science.

"Cooperation between Indonesia and Russia made much progress, especially related to trading volume continues to increase," said Coordinating Minister Hatta Rajasa while leading a delegation of Indonesia to meet the Russian delegation at the Hotel Indonesia Kempinsky, Jakarta, Thursday (10/27/2011).

According to Hatta, the field of transport, both countries discussed the plan of railway construction investment in Kalimantan. Russian investment is related to the Masterplan Economic Acceleration and Expansion of Indonesia (MP3EI).

That, among others, could provide jobs for people and business opportunities for local companies. Implementation of this project will be one integral part of good relations between Indonesia and Russia.

The value of trade between the two countries continues to be improved. Until July 2011, Indonesia-Russia trade reached U.S. $ 1.5 billion and is targeted to U.S. $ 5 billion in 2014. This is a record in the history of trade relations between the two countries.

Previously, the Indonesian delegation led by Coordinating Minister Hatta Rajasa've been to Saint Petersburg, Russia, June 19, 2011.

Hatta arrival to Russia was invited by the Russian government to attend the St. Petersburg International Economic Forum in 16 to 17 June 2011. On that occasion, Hatta delivered a presentation about the Asia Pacific Economic Cooperation: Evaluation and Substantial Continuation Agenda.

In St. Petersburg International Economic Forum is held discussions with members of the Asia-Pacific Economic Cooperation (APEC) that deliberately held in preparation for Russia to APEC leaders in 2012. In the discussion that discussed the progress of cooperation in APEC this year held by the United States, has included cooperation priorities chosen for APEC 2011.

APEC cooperation priorities in 2011 is to strengthen regional economic integration and trade expansion, promoting green growth, strengthening cooperation in the field of regulation and synchronization rules. The delegation of Japan expressed his experience as host of APEC 2010 that discussed the cooperation agenda of APEC is the continuity and evolution, is not binding, and cross-cutting issues.

On his visit, Hatta Rajasa met the Russian Minister of Economic Development, Elvira Nabiullina Sakhipzadovna. Hatta delivered four areas of Indonesia-Russia cooperation, namely food security, including energy in which the development of nuclear energy for peace, including rail transport, trade and investment.

For the field of energy, Russia is interested in the field of renewable energy, including the geothermal and nuclear power plants. This is in line with the work program of Indonesia which is currently concentrating on the development of enegy.

In 2008, the Russian Federation's Ambassador to Indonesia, Alexander Ivanov said the bilateral trade volume has exceeded 1 billion U.S. dollars. That is the target of approved President Vladimir Putin and Susilo Bambang Yudhoyono in 2007.

"Although in 2009 the volume of trade between Russia and Indonesia declined slightly, I assess the dynamics of bilateral cooperation in the economic promise," he said.

Some Russian companies are active in Indonesia is, FGUP Goznak, Irkut corporation, the corporation aeroangkasa Vozdushny start, OAO Silovye mashiny, OAO Chetra-promyshlennye mashiny, OAO Chelyabinsky traktorny ZAVOD Uraltrak, NPG Sainmet, and innovation firm Arter Technology. The series of bilateral Russian-Indonesian project continues terealisiasi.

In the field of oil and gas, there are projects implemented by Russian companies and Sintezmorneftegaz Petros. For mining, Russia to invest in the construction of a nickel smelter and several other mining products. For the project, estimated investment of U.S. $ 6-7 billion. Russia is a country with huge potential for investment in the field for nickel and copper smelters in the mining sector.

As for the telecommunications and space, the Russian company Satellite Information System, Reshetnev won the tender and signed a contract in early 2009 to launch a telecommunications satellite Indonesia "Telkom-3" in 2011 (the project is worth 200 million U.S. dollars).

"In this context of cooperation between Russia and Indonesia in the field of telecommunications and space has been held previously, eg, satellite communication Indonesia" Garuda-1 "was launched from the cosmodrome" Baikonur "in 2000," said Alexander.

For the agriculture and food industry, Russia hopes that Indonesia can meet market demands in the field of garment that is in the form of Muslim clothing and food products lawful for the 24 million Muslim population of Russia. Russia's interest because the designs of apparel products more varied Muslim Indonesia. Russia is also interested in Indonesia because the halal food product halal certificate issued by an agency Indonesia halal only.

In terms of the defense industry, Russia has been supplying the Sukhoi fighter aircraft for the Air Force. Forward Russia hopes to enhance cooperation in the defense industry.

Government of Indonesia requested that the Russian side will provide value-added investments in transportation, aerospace, education and science. And the addition of two more sectors, namely agriculture and infrastructure. (*)

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