REPUBLIKA.CO.ID, JAKARTA -- The Capital Investment Coordinating Board (BKPM) said realization of Chinese investment plans was only 7 percent in the past five years but a sharp growth of 169 percent was recorded in 2014.
"The value (of Chinese investment) was only US$1.5 billion of its total investment plans of US$23.3 billion in 2010-2014 period," a BKPM director Rudy Salahudin said here on Tuesday.
In 2014, however, realization of Chinese investment projects reached US$800 million or an increase of 169 percent from the previous year, Rudy said after attending a seminar on "Chinese business entrepreneur dialogue".
He said Chine investors play an important role in Indonesia, adding they are involved in the development of utility sector such as electricity, gas and water as well as in mining , metal industry and trade.
He said 52 percent of Chinese investment projects are outside java not including investment in financial sector and upstream oil and gas industry.
"We hope that next time, Chinese investment in Indonesia could be smoothly implemented as Indonesia is still above the average in economic growth in Asia," he said.
Currently there are 11 Chinese companies among the world's largest , operating in Indonesia.
"Based on data of 'fortune international' there are 95 Chinese companies ranked among the world's 500 largest companies and 11 of them are in Indonesia with 12 other planning investment," he added.
Earlier, a cabinet minister said the government has tightened conditions of cooperation in infrastructure projects with China to prevent a repeat of "disappointing experience" in the implementation of the Fast Track Program (FTP) in power infrastructure.
"We have improved the conditions to prevent long delay in project implementation and to guarantee adequate quality," Minister for National Development planning/head of the National Development Planning Board (Bappenas) Andrinof Chaniago said on Monday.
According to official website of the cabinet secretariat, in bilateral talks last week, President Jokowi asked President Xi Jinping for involvement of Chinese investors in the development of maritime, air transport, road, railway and power infrastructure in the country.
Andrinof said that earlier the government expressed disappointment with the result of cooperation with China in the implementation of first phase of the Fast Track Program to build power plants with a total capacity of 10,000 megawatts.
The project began in 2006 and completion has long been delayed. Currently the project is 90 percent completed but the capacity is only 35 percent - 50 percent of the target.
The condition of cooperation would be improved and supervision is tightened in technology, in the employment of consultant, technical design , etc, he said.
He said China will rebuild power plants already completed under the the first phase of FTP to improve the quality of the power plants.
In talks with Xi Jinping, Jokowi sought confirmation of Chinese involvement in the construction of 24 seaports, 15 airports,1,000 kilometers of roads ,8,700 kilometers of railway tracks and power plants with a total capacity of 35,000 megawatts.
China is also expected to take part in the development of fast trains serving the Jakarta-Bandung route and Jakarta - Surabaya track.
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