Reliance Pledges $5-$10b Investment in Indonesia
Camelia Pasandaran. The Jakarta Globe, Jakarta - 18/05/2011
India’s Reliance ADA Group wants to invest as much as $10 billion (Rp 85.5 trillion) in Indonesia, the Investment Coordinating Board says.
Gita Wirjawan, chairman of the board, also known as the BKPM, said the Indian conglomerate had told President Susilo Bambang Yudhoyono during a meeting at the Presidential Office on Wednesday that it wanted to invest between $5 billion and $10 billion.
The investments would be made it three key areas, Gita said.
The first, he said, was the mining sector, having taken over operation of a coal mine in South Sumatra, and related infrastructure, including transportation networks and a port.
Second, Reliance wanted to participate in infrastructure projects, including the rail link between Soekarno-Hatta International Airport and the capital, Gita said.
Transportation Minister Freddy Numberi added that Reliance also wanted to invest in a rail project linking Semarang, the capital of Central Java, to Surabaya, the capital of East Java, as well as port and airport projects.
Third, Gita continued, the company was interested in power infrastructure that utilized not only coal, but also solar and geothermal energy sources.
“It is also interested in investing in financial services, entertainment and the media,” he said.
Gita said Reliance was a shareholder in DreamWorks Pictures from Hollywood and Bloomberg TV in India.
Indonesia has seen a steady pick up in investor interest over the past 18 months including from India, thanks to a combination of political stability and improving economic growth sustained by strong domestic consumption and demand for commodities ranging from coal to palm oil.
Several Indian companies in January signed a number of agreements totaling $15 billion to build infrastructure projects, including airports and steel plant to help the country overcome the lack of infrastructure development.