Indonesia expects China to invest more in manufacturing

Jakarta (Antara News) - Indonesia expects China to invest more in Indonesia`s manufacturing field such as automotive, electronic and textile industries, a minister said.

"Most of (Chinese) investment currently goes into natural resources and infrastructure. We hope that (Chinese) investment in our manufacturing industry will increase too," Trade Minister Mari Elka Pangestu said after receiving computer grants from the Chinese government here Monday.

She said an increase in Chinese investment in the automotive industry would be very useful particularly when ASEAN concluded a free trade agreement with China.

"(The agreement) will be very helpful for its production here, not only to serve the Indonesian market but the Asian region as well," she said.

To date, a great chunk of Chinese investment in Indonesia`s automotive industry was to make Chery and Geely cars.

Chinese Ambassador to Indonesia Lan Lijun said the Chinese investment in Chery car making was aimed at increasing its production volume.

He said most of Chinese investment in Indonesia was made in the fields of energy, natural resources, industry, transportation, and electronics.

The two countries had the potentials of cooperating in the development of infrastructure. "The two countries have set up an investment coordination promotion center. We hope this system will help the two countries increase their investment," he said.

The value of trade between Indonesia and China increases by an average of 20 percent per year. The two countries have set themselves the target of reaching a bilateral trade value of US$30 billion by 2010.

Two-way trade between the two countries reached US$14.98 billion in 2006 with Indonesia enjoying a surplus of US$1.70 billion.

In the first five months of 2007 Indonesia`s exports to China reached US$3.71 billion, while its imports from China stood at US$3.26 billion.(*)
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