British Investors Ready to Invest 9.29 Billion US Dollar in Indonesia

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 1 November 2021
Category: News
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President Joko Widodo is holding a CEOs Forum meeting with some British major investors in Glasgow, Scotland, on Monday (01/11). (Photo: Bureau of Press, Media, and Information Affairs of Presidential Secretariat/Lukas)

After attending the G20 Summit in Rome, Italy, on 30-31 October 2021, President Joko “Jokowi” Widodo headed towards Glasgow, Scotland to attend the UN Climate Change Conference (the COP26 Summit) on 1-2 November 2021.

Before attending the COP26 Summit, President held a CEOs Forum meeting with a number of British investors, on Monday morning (01/11) at local time.

“I have just attended the G20 Summit in Rome,” the President said in the first place.

In the meeting held at the hotel where the President was staying during in Glasgow, President emphasized discussion on investment in green economy sector.  The President even underlined that few days ago he signed Presidential Regulation on carbon economic value instrument that would regulate the mechanism of carbon trading in the future.

“Besides reducing greenhouse gas emission, the measure to be taken is also improving development funding. Carbon market should be managed justly and transparently. Indonesian policy of climate change handling also includes transition to green economy,” President said.

In addition to that, in energy sector, Indonesia opens up investment opportunities to enter early retirement from coal generators and then replace them with renewable energy.

The Indonesian Government has identified that there are 5.5 gigawatt of Coal-fired Power Plants that can be included in the project. The project itself needs funding as much as 25-30 billion US Dollar for the following eight years.

“Indonesia will replace coal generators with renewable energy in 2040, with the conditions that there are cooperation, technologies, proper economic values, and international funding helping the energy transition,” President said.

Furthermore, President also explained that Indonesia has potential to develop electric vehicle and battery due to our richness in mineral resources, such as nickel, copper, and bauxite/aluminum ores.

“Currently, a commitment of 35 billion US Dollar investment has been made and has been realized in battery and electric vehicle industries,” President said.

At the moment, Indonesia is also building a 13-thousand-hectare Green Industrial Park in North Kalimantan that will use environmental-friendly energy, such as hydropower and solar panel farm in order to produce environmental-friendly products.

The meeting with the CEOs is hoped to accelerate the realization of investment commitment made by the companies involved in the meeting that reach the amount of 9.29 billion US Dollar to support the acceleration of energy transition and green economy in Indonesia.

“Once again, Indonesia always fulfils its commitment. Indonesia does not like using rhetoric. We continue to work in order to fulfil the commitment. To conclude the meeting, I would like to extend my appreciation for your commitment to invest in Indonesia in an amount of 9.29 billion US Dollar. Indonesia is ready to be a good partner for your investment,” President said.

Upon hearing the explanation given by the President, the CEOs agreed to consider that Indonesia is an interesting place to invest and they also support the presidency of Indonesia in G20.

“Indonesia has been very attractive for foreign direct investment. We believe that Indonesia will continue to attract more global investment,” one of the CEOs said.

High-ranking officials who were accompanying President Jokowi at the meeting were Coordinating Minister for Economic Affairs Airlangga Hartanto, Coordinating Minister for Maritime Affairs and Investment  Luhut Binsar Pandjaitan and Minister of Foreign Affairs Retno LP Marsudi, Minister of Finance Sri Mulyani Indrawati, Minister of State-Owned Enterprises Erick Thohir, Minister of Environment and Forestry Siti Nurbaya, Minister of Public Works and Public Housing Basuki Hadimuljono, Cabinet Secretary Pramono Anung, Indonesian Ambassador to Great Britain Desra Percaya, and Chairman of Indonesian Chamber of Commerce and Industry Arsjad Rasjid.

The CEOs attending the meeting are involved in various industries, among others, namely in renewable energy, sustainable commodities, finance, and infrastructures. They represent British leading companies, among others, namely British Petroleum (BP), Jardine Matheson, Mars Wrigley UK, Standard Chartered, HSBC, dan Shire Oak. (Bureau of Press, Media, and Information Affairs of Presidential Secretariat/UN) (AW/LW)

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