Chinese firms increase presence in Indonesia

By He Shan

China.org.cn, July 14, 2014

China's SINOHYDRO Corporation has teamed up with Indonesian firms to build Indonesia's second largest dam, the Jatigede Dam. It is one of many Chinese companies seeking to increase their presence in Indonesia.

During the construction period, the project has created more than 2,000 local jobs for the local people. Upon completion, the project will provide irrigation for around 90.000 hectares of rice fields in the Indramayu and Cirebon regions.

SINOHYDRO has contracted to construct the project, largely funded by the Export-Import Bank of China. The main purpose of the dam is to irrigate land and provide drinking water to the local people.

The completion of the first phase of the project will deliver benefits to the local economy and improve the local life.

Due to its contributions to the local sustainability, the water conservancy project is so important that,Chinese President Xi Jinping mentioned the project in a speech to Indonesia's parliament during his visit to the country last October.

The Beijing-based SINOHYDRO Corporation has been a poster child for Chinese assistance, with funds and technology in tow, to the development of the fourth most populous country in the world.

"The project doesnt only create jobs, but also acts as an enabler to help the local companies to enhance their technology," said by one of SINOHYDROs representative's for the project.

"The project hit a snag at the beginning due to the technical deficiency of the local staff. With the help of Chinese technicians, the project was able to move forward," he said.

Chinese's companies have been trying to better fit into the local environment. For instance, they employ local workers to prime the pump and bring in a third-party environmental agency to give a reliable environmental report on their projects.

Since the late 1990s, when the two countries restored diplomatic ties, Chinese investments have grown rapidly in Indonesia, and they run the gamut from hydropower to transport, financing to manufacturing.

Chinese companies are seeking to make good use of China funds to assist Indonesian economy as well as to bolster their presence in the market.,

There have been some success stories. Huawei Technologies, for instance, has a large share of Indonesia's telecoms market in a partnership with mobile operator XL Axiata; and Haier, Chinas largest home appliances maker, acquired Sanyo's Indonesian household goods businesses in 2012.

Indonesia has revved up its efforts to improve its investment environment as its growing economy and stable political and social regime have made Indonesia a desirable investment destination.

The Indonesian government has put improving the business environment high on its list of priorities and has taken a series of reform measures.

Trade between China and Indonesia scored from US$16.5 billion in 2005 to more than US$66.2 billion in 2012.