Kingdom, Indonesia vow to push industrial investments [Arab News (Saudi Arabia)]
(Arab News (Saudi Arabia) Via Acquire Media NewsEdge) A joint Saudi-Indonesian oil refinery and petrochemical project in Tuban, East Java involves a capital investment of $ 30 billion, Indonesian Ambassador Gatot Abdullah Mansyur said yesterday.
He estimated the total Saudi investment in his country at $ 8.65 billion. There is a new joint mineral project and a health water project in South Sulawesi at a cost of $ 10 billion and $ 200 million respectively, he added.
"Saudi Telecom Company has an investment of $ 1.2 billion in Axis and $ 370 million in Natrindo," the ambassador said while highlighting the growing economic relations between the two OIC countries.
Saudi Aramco Asia Company, a subsidiary of Saudi Aramco, and PT Pertamina (Persero) signed a memorandum of understanding last year to jointly evaluate the economic feasibility for Tuban project.
The proposed refinery and petrochemicals project will be designed to process 300,000 barrels per day of crude oil, much of which will be supplied by Saudi Aramco pursuant to a long-term contract, and will produce high-quality refined petroleum and petrochemicals products to meet rising demand in Indonesia and elsewhere in southeast Asia.
The project represents an opportunity for Saudi Aramco to partner with Pertamina, Indonesia's state oil and gas company, and to capitalize on investment opportunities in Indonesia's growing downstream industry. Additionally, it extends the close cooperation between Saudi Aramco and Pertamina and increases prospects for industrialization and economic diversification in Indonesia.
"This cooperation in investment with Saudi Aramco is of the highest value for both Pertamina and the Republic of Indonesia to strengthen the fuel and petrochemical supply, to satisfy the huge domestic demand now and for the future," said M. Afdal Bahaudin, Pertamina's director for Investment Planning and Risk Management.
The Saudi-Indonesia Business Forum at Jeddah Hilton, attended by President Susilo Bambang Yudhoyono, was a big success as it helped turning Saudis' attention to vast investment opportunities in Indonesia.
Mazen Batterjee, vice president of Jeddah Chamber of Commerce and Industry, told Arab News that a Saudi business delegation would soon visit Indonesia to explore investment opportunities in the country.
He said the Saudi-Indonesian trade exchange does not reflect the potentials of the two countries. Bilateral trade stood at $ 6.84 billion in 2011 with Saudi exports reaching $ 5.42 billion. Indonesia is Saudi Arabia's 17th trading partner. Many countries outside the Organization of Islamic Cooperation have better trade ties with the Southeast Asian country.
During the forum, Indonesian President Yudhoyono, Industry Minister MS. Hidayat, Trade Minister Gita Wirjawan and Investment Board Chairman Chatis Basri reassured Saudi investors that they would receive all support and facilities in the country. The Saudis were also informed that Indonesia's domestic market would reach $ 36 trillion in 20 years.
Indonesia is one of the fast growing economies in the world with a GDP growth rate of 6.3 percent in 2012. "With its abundant natural resources, rich cultural heritage and industrious population, Indonesia has provided the world with many important and valuable goods and services," said director general of the country's export development authority.
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