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Ambassador Xie Feng attended the "Forum on Development Finance Supporting the Infrastructure Building and Industries Development in Indonesia" and made a speech

On November 23rd, Ambassador Xie Feng attended the “Forum on Development Finance Supporting the Infrastructure Building and Industries Development in Indonesia” and made a speech.

Ambassador Xie Feng said that the central topic of this forum was how development banking could support Indonesia's infrastructure and industrial development. Various government departments, enterprises and financial institutions were gathered today to share experience and expertise. This was yet another new initiative to promote our strategic alignment and practical cooperation. This forum could not have taken place at a better time.

Ambassador Xie Feng said that there was a Chinese saying, “Want to be rich? Build road first.” What we had learned from over 30 years’ of reform and opening-up was that better infrastructure and connectivity could lead to faster and stronger economic and industrial growth. As the world's second largest economy and largest trading nation, China also held the largest foreign exchange reserves and manufacturing output. China had sufficient capacity, advanced technology, rich experience and adequate capital for infrastructure and industrial development.

Ambassador Xie Feng said, after taking office, President Jokowi considered it was imperative to break the infrastructure bottleneck. His administration had adopted many supporting measures to promote industrial development and attract foreign investment, which had proven very effective. Many infrastructure projects including highways, railways, ports, docks, power plants and airports were under construction across Indonesia. More and more businesses and investors were coming to Indonesia. We saw not only a prospering society but also a bright future for Indonesia.

Ambassador Xie Feng said,Both as major emerging economies and developing countries, China and Indonesia complemented each other in natural resources, infrastructure, industrial capacity and trade structure. We saw great potential for bilateral cooperation. Since taking office, President Jokowi had paid 3 visits to China and our two presidents had held 5 bilateral meetings. Their most important consensus was to align the "21st Century Maritime Silk Road" with "Global Marine Fulcrum" strategie, deepen practical cooperation in all areas including infrastructure and industrial capacity and build a community of shared destiny. Our efforts had yielded fruitful results and brought tangible benefits to our people.

Ambassador Xie Feng said,the three vice-premier-level dialogue mechanisms, namely in political security, trade and investment as well as people-to-people exchanges, were functioning smoothly. Bilateral relationship between our two countries was now stronger than ever, bringing more vitality to the region. Now we saw wider scale and higher returns on Chinese investment. In the first half of this year, Chinese FDI grew by 532%. As China remained the largest trading partner with Indonesia, its investment had risen from the 10th to the 3rd place. Chinese enterprises actively supported infrastructure development in Indonesia to help boost local connectivity. They participated in projects such as ports, power plants, highways, railways, airports and bridges either through EPC or investment operation. Now, 1/4 of Indonesia’s electricity was generated by power plants built by China. We jointly built the longest bridge in Indonesia, the Suramadu Bridge, which greatly facilitated the movement of people and goods between Surabaya and Madura. Last year, we completed the Jatigede Dam project. It was Indonesia’s second largest dam that could irrigate 90,000 hectares of farmland. Now, inside the Morowali Qingshan Industrial Part, there were 5 ferro-nickel and stainless steel smelting plants with a total investment of nearly 30 billion US dollars. Previously, the export price for nickel ore was only 30 US dollars per ton. But after smelted into ferro-nickel, its price was increased to 1,300 US dollars per ton. As for the stainless steel plant, once completed by mid 2017, it would have an annual output of 2 million tons with sales price reaching 2,300 US dollars per ton. The Qingshan Park had helped to extend the industrial chain and increase added-value. Its products were sold in Indonesia as well as in Southeast Asia and Europe. Additionally, it created nearly 20,000 jobs and boosted the development of surrounding regions.

Ambassador Xie Feng said,the under-construction Jakarta-Bandung High-speed Railway was the flagship of our bilateral cooperation and a new bond between our two peoples. Our enterprises had adhered to the Silkroad Spirit featuring joint consultation, joint building and shared benefits. They shared both the risks and benefits. The project would also lead to stronger growth in smelting, manufacturing, infrastructure, electricity, service, logistics and other supporting industries along the route, add more jobs and increase fiscal revenue. We expected to see a new economic corridor along the high-speed railway.

Ambassador Xie Feng said,China offered 10 billion US dollar in infrastructure loans to ASEAN, set up the 40-billion-US-dollar Silk Road Fund and initiated the Asia Infrastructure Investment Bank (AIIB) totaling 100 billion US dollar. Meanwhile, various development, policy and commercial banks now offered a wide rage of competitive financing packages to Indonesia. Sino-Indonesia cooperation continued to expand into new areas, providing new drives and impetus. Our cooperation was expanding from traditional trade and project contracting to industrial capacity, investment, finance, e-commerce etc. At present, Alibaba, JD.com, Tecent and other Chinese internet enterprises had entered the Indonesian market and began various cooperation with local technology and innovation companies. Under a new cooperation model, Chinese venture capitals provideded financing support for Grabtaxi and other car-pooling services. From January to June, the number of Chinese tourists to Indonesia increased by 43% to exceed 830,000, making China the biggest source of overseas tourists for Indonesia.

Ambassador Xie Feng said,the China Development Bank played an important role in China-Indonesia infrastructure and industrial development cooperation. Since entering the Indonesian market in 2006, CDB had supported infrastructure and industrial projects including electricity, telecommunications, paper-making, mining, and agriculture. In 2015, CDB offered 30 billion US dollars in loans three state-owned banks in Indonesia, namely, BRI, MANDIRI and BNI. The loan helped to boost confidence in the Indonesian financial markets and stabilize the local currency. CDB also provided financing service for the Jakarta-Bandung High-speed Railway to help achieve early completion.

Finally,Ambassador Xie Feng said,Chinawas and would continue to be Indonesia’s good neighbor, good friend and good partner. China was ready to work with Indonesia to implement the important consensus reached between our presidents to further align development strategies, promote pragmatic cooperation and share development experience as well as benefits. China would continue to encourage more enterprises to invest in Indonesia and help speed up Indonesian economic growth. Meanwhile, China looked forward to a more favorable business environment in Indonesia.

Tamba Parulian,Vice Chairman of Investment Coordinating Board (BKPM) also attended the forum ,he said that China's investment in Indonesia was increasing , China has become the third largest FDI resource of Indonesia. BKPM and other departments and institutes in Indonesia will work together to provide the best service for Chinese investors in order to attract more and more FDI from China.

The forum,supported by Indonesian Coordinating Ministry of Economy,and Embassy of China in Indonesia, was organized by China Development Bank and Sinarmas. About 250 representatives of the governments and companies from both Indonesia and China, inchuding officials from Ministry of Coordinating Ministry for Economic Affairs, Investment Coordinating Board (BKPM) and Ministry of National Development Planning in Indonesia,attended this forum.

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