Indonesia Vice President Jusuf Kalla (2nd R) meets with Chinese President Xi Jinping (not in image) on April 25, 2019, as part of the second Belt and Road Forum (BRF) in Beijing.
BEIJING, KOMPAS — Twenty-three cooperation projects between Indonesia and China will soon be realized following the signing of a memorandum of understanding (MOU) between a number of businesspeople from the two countries in Beijing, China, on Friday.
The infrastructure development projects, which will be implemented under the Belt and Road Initiative (BRI) scheme, will not use any government debts because the cooperation will be carried out between the private sectors of the country.
The cooperation agreement was signed after the opening of the second BRI Summit, which was also attended by Vice President Jusuf Kalla. According to the plan, the cooperation on the development of the infrastructure projects will be carried out in the corridors of North Sumatra, West Kalimantan, North Kalimantan, Maluku and Bali.
AFP/FRED DUFOUR
Chinese President Xi Jinping speaks during the opening ceremony of the Belt and Road Forum in Beijing in April 26, 2019.
The cooperation projects will, among others, include the construction of industrial estates and supporting infrastructure facilities in Tanah Kuning, North Kalimantan and the construction of a technology park on Kura Kura island, Bali. The total investment commitment for the infrastructure projects will reach about US$14.215 billion.
Vice President Kalla, who witnessed the signing of the MoU, hoped that all the cooperation projects could be realized soon. "It is not only for ceremonial purposes but also must be implemented properly and consistently in the form of B to B [business to business] cooperation," he said in front of around 400 Indonesian and Chinese businesspeople.
AFP/GREG BAKER
A worker pushes a cart past a screen showing a photo of the Fujian Pilot Free Trade Zone, at the venue of the Belt and Road Forum in Beijing on April 26. China\'s Belt and Road projects need to be transparent and fiscally sustainable, Chinese President Xi Jinping said on April 26 in apparent acknowledgement of growing concerns about debt linked to his global infrastructure initiative.
Also witnessing the signing of the MoU were Coordinating Maritime Affairs Minister Luhut Pandjaitan, Research, Technology and Higher Education Minister Muhammad Nasir, chairman of the Investment Coordinating Board (BKPM) Thomas Lembong, and Indonesian Ambassador to China Djauhari Oratmangun.No debts
Luhut stated that these projects to be developed under the BRI scheme would not be financed by the government’s debts. The cooperation will instead bring new investment and provide employment.
"The cooperation has nothing to do with the government’s debts because it will be based on B to B cooperation," he said.
The Indonesian government will also be selective in giving business licenses. There are at least five conditions that must be met by foreign investors before being allowed to invest in the country. The investment projects should, as an example, hire as many local workers as possible, create added value in the economy, allow the transfer technology and should be environmentally friendly.
Kalla also reminded the businesspeople that the cooperation should be based on the principles of equality and mutual benefits.
The decision of Chinese entrepreneurs to invest in Indonesia is considered appropriate. The reason is that all Indonesia-China investment cooperation always benefits both parties. It, at least, can be seen from the fact that no complaints have so far been made by Chinese businesspeople who have already invested in Indonesia.
Support
Support from a number of countries in Europe and the United States for the Belt and Road Initiative was seen at the summit. European countries sent their representatives to the summit, including Britain, Germany, France and Spain. Italy has become the first major country in the European Union to take part in the Belt and Road Initiative megaproject.
AFP/NICOLAS ASFOURI
Paramilitary police officers secure the entrance of the Belt and Road Forum venue in Beijing on April 26, 2019. - Chinese President Xi Jinping sought to bat away concerns about his ambitious Belt and Road Initiative, saying his global infrastructure project will have "zero tolerance" for corruption while vowing to prevent debt risks.
In his speech at the opening of the summit, Chinese President Xi Jinping said BRI must comply with the principles of sustainability and create high-quality growth for everyone. For this reason, BRI will have to adhere business concepts such as openness, sustainability, risk resistance and reasonable pricing. (AFP / REUTERS / AYU / BEN)
