This is Indonesia-US US$ 20 Billion Business Agreement

By Alfurkon Setiawan
Date 27 Oktober 2015
Category: News
US Chamber

President Joko Widodo greeted by US Chamber Officials when attending US Chamber’s gala dinner, in Washington D.C., US, on Monday (26/10) evening local time

After meeting the President of the United States Barack Obama at the White House, Washington DC, on Monday (26/10) afternoon local time or on Tuesday (27/10) dawn Western Indonesian Time (WIB), President Joko “Jokowi” Widodo visited the Office of US Chamber of Commerce to witness the business agreement between Indonesia and US businesspeople.

President Joko Widodo was welcomed by US Chamber of Commerce President Tom Donohue, US-ASEAN Business Council President Alexander Feldman, and UNISINDO President Ambassador David Merril. Moreover, the event was attended by 250 businesspeople and policy makers from both countries.

As previously mentioned by the Head of the Indonesia Investment Coordinating Board (BKPM) Franky Sibarani, the US$ 20.075 billion business deal was reached during the state visit of President Joko Widodo to the US.

The details of the business deals are as follows:

  1. Business deal worth US$ 15.705 billion:
  1. Sale and purchase agreement of Liquefied Natural Gas (LNG) between state oil and gas company Pertamina and Corpus Christie Liquefaction worth US$ 13 billion for delivering LNG to Lampung Floating Storage Regasification Unit (RSFU) to meet gas needs in the western part of Indonesia and an LNG terminal for eastern Indonesia.
  2. Expansion from Phillip Morris worth US$ 1.9 billion (as many as US$ 500 million is allocated for capital expenditure and US$ 1.4 billion for the issuance of Sampoerna’s new shares). The amount allocating for capital expenditure is used to expand the factory and offices, as well as for the investment during 2016 to 2020.
  3. Coca Cola to invest US$ 500 million for expansion and expanding production, warehouse, distribution and infrastructure of soft drink during 2015-2018.
  4. Eagle Ford’s shale gas development plan, and development plan of Fasken possesed by Swift Energy that will be carried out by Saka Energi and Swift Energy in Webb Country, Texas worth US$175 million.
  5. Business agreement between State electricity company PLN with General Electric, in this case is a US$100 million worth agreement between PLN Gorontalo and General Electric for the development of 100 MW turbine gas and cydepower units in Gorontalo.
  6. Cooperation between Udayana University and Skychaser Energy for US$ 30 million water conservation and reduce power consumption projects.
  7. Cooperation between BNI Syariah and Master Card to launch a debit card for haj and umroh (minor haj) pilgrims which is conducted by BNI Syariah and Master Card.
  1. Business deal worth US$ 4,547 billion which is divided into three groups, among others:

Group 1

  1. Business deal worth US$ 850 million between PLN with UPC Renewables for the development of 350 MW biogas-fired power plants (PLTB) during 2015-2018.
  2. Business deal worth US$ 600 million between Cikarang Listrindo and General Electric for the development expansion of power plants.
  3. Business deal worth US$ 400 million between PT Indonesia Power and General Electric for the development of 700 MW power plants in Central Java.
  4. Business deal worth US$ 525 million between PLN Batam and General Electric for the development of 500 MW mobile power plants in Mataram, Bangka, Tanjung Jabung, Pontianak, Lampung and Sei Rotan.

Group 2

  1. Business deal worth US$ 60 million between State railway PT Kereta Api Indonesia and General Electric for the maintenance of 50 locomotives for 8 years.
  2. Business deal worth US$ 500 million between PT PLN and Caterpillar to create a 2 gigawatt hybrid power plant and PV+ energy storage solar project for microgrid in remote areas (covers 500 islands) with initial capital investment financing through power purchase agreement with PLN.
  3. Cargill is planning to invest $750 million during 2015 to 2019, in which as many as US$84 million has been realized and the remaining US$ 666 million will be used for new investment.
  4. Caterpillar will develop a Remanufacturing Facility for Cylinder Head in Cileungsi, Bogor, West Java, worth $12 million which is a manifestation of self signing.

Group 3

  1. Partnership worth US$ 10 million between State banknote printing firm Perum Peruri and Crane Currency for the development of paper money factory in Karawang. Meanwhile, Perum Peruri and Jarden Zinc will establish a partnership worth US$ 30 million for the development of blank coin factory in Karawang.
  2. Partnership worth US$ 800 million between Pertamina and Bechtel Corporation for refineries construction and development in five years .

Investment worth US$ 5 to 10 million between Kilat Wahana Jenggala and Hubell Power Systems for the expansion of existing plant producing polymer insulator transmission for electricity distribution and for adding localized transmission. (SI/UN/ES) (RAS/MMB/YM/Naster)

Latest News