ENTREPRENEURS INDONESIA-SAUDI SIGNED FOUR MOU COOPERATION
JAKARTA, Indonesia – The Indonesian Chamber of Commerce and Industry (KADIN) signed four memorandums of understanding in cooperation with Saudi Arabia. The total value of investments to be embedded reached US $ 2.4 billion.
Chairman of Indonesian Chamber of Commerce and Industry, Rosan Roeslani who opened the event “Indonesia-Saudi Arabia Business Forum” in Jakarta on Thursday, March 2 said four cooperation signed include housing construction, biomass power, health and tourism.
“Today’s MOU totals approximately US $ 2.4 billion consisting of four partnerships, one of which is our SOE, Wijaya Karya,” Rosan said at the Grand Hyatt Hotel Ballroom.
He explained that Wiyaja Karya was involved in the construction of 8,000 residential projects in Saudi Arabia with an investment value of two billion dollars. Meanwhile, in the energy sector, Saudi entrepreneurs will invest in biomass power plant (PLTBM) “biomass powerplant” with a value of about 100 million dollars. This cooperation involves the Green Earth Animal Producer Cooperative with Alfanar Energy.
The third cooperation signed is in the field of health involving Healthcare Bunda Medik with Aloula Medical Care. The fourth cooperation agreed in the field of tourism, especially for the visit of Hajj and Umrah.
“They are trying to improve tourism for hajj and umroh with one of the largest investment companies in Saudi Arabia. They try to channel their investment through hajj and umroh, “Rosan said.
Saudi Arabia and Indonesia are two countries that share a productive population with young age and have a major impact and contribution in the global economy. For Indonesia, Saudi is one of the most potential trading partners in the Middle East with total non-oil trade value showing a positive increase of 3.89 percent per year in 2011 to 2015.
In addition, the value of Indonesia’s non oil and gas exports to Saudi in the period 2011 – 2015 was recorded at 1.83 billion per year. On the other hand, Indonesia’s non-oil and gas imports reached 921.23 million dollars per year in the same period.
Rosan assess the value of Saudi investment to Indonesia from year to year increase. Data in 2014 saw six Indonesian projects with Saudi Arabia amounting to 2.9 million dollars and in 2015 consisted of 28 projects with a value of 30.4 million dollars.
“We know that there is a great opportunity for the Saudis to be involved in efforts to increase investment in Indonesia,” he said.
Dozens of businessmen from Saudi Arabia is part of the entourage of King Salman bin Abdulaziz who was on a visit to Indonesia. Indonesia wants to use this rare moment to focus on improving economic relations.