In March 2015, Indonesian president Joko Widodo paid a state visit to China and attended the Boao Forum for Asia (BFA) Annual Conference, signing the Joint Statement on strengthen comprehensive strategic partnership between the two countries.
Indonesian Foreign Ministry spokesman Arrmanatha Nasir said the two-nation communication “will highlight that Indonesia is an important partner for those countries and is ready to open its markets, and to cooperate economically”.
Later in April 2015, Indonesia’s Investment Coordinating Board (BKPM) released that China had broken into the top ten list of Indonesia’s biggest foreign investors during the first quarter for the first time. Followed by a recent interview at the very beginning this year, BKPM Director Azhar Lubis commented that China is likely to be biggest investor to Indonesia as Chinese investors often invest in other countries through proxy companies or subsidiaries that are based in other countries such as Singapore or Hong Kong which is unable to monitor investment.
According to Financial Times, Jakarta estimates $450bn of investment is required to fund its infrastructure plans for the five years to 2019, which includes six new refineries, 35,000 MW of electricity capacity, and 15 airports. While Indonesia continues to produce more demand and projects as part of their strategy for infrastructure improvement, this is an opportunity for Chinese companies to comprehensively test their technological and managerial capabilities in another market.
Rani Jarkas, Chairman of Cedrus Investments, an investment pioneer with years of financial experience in Asia, said “Despite its slow economic growth during past years, Indonesian still remains a promising investment destination for Chinese investors in Southeast Asia. I expect that Indonesia will attract more direct investment from China as the bilateral relations continue to strengthen in the future.”
Rani Jarkas, the Chairman of Cedrus Investments.
Rani Jarkas is a highly experienced financial services executive, with over 20 years of international banking experience. Currently, Mr. Jarkas is the Chairman of Cedrus Investments, a global boutique investment firm. Cedrus’ domain expertise is in life sciences, natural resources, energy, cleantech and nanotechnology. – Rani Jarkas