President Keen to Attract New Foreign Investors
Joko Widodo, the President of Indonesia will supervise the signing of energy and trade deals worth $18.8 billion. This deal also includes Pertamina’s deal with Abu Dhabi National Oil Co. which would upgrade the West Java refinery. Some deals like Pertamina’s purchase of LPG from ADNOC are new while some other deals have been under discussion for some time.
Widodo is on his first overseas trip of the year and will witness the signings this weekend. Last year, Abu Dhabi’s Crown Prince Sheikh Mohammad Bin Zayed was on an official visit to Indonesia. Widodo said he is keen to attract more foreign investors to help in creating jobs and boosting growth in Indonesia. “The total value is $18.8 billion and around a dozen, agreements will be completed during the Abu Dhabi trip,” said Luhut Pandjaitan, an Indonesian minister.
Other Notable Deals
“Indonesian state energy firm Pertamina’s deal with ADNOC to upgrade a refinery in Balongan, West Java is among the ready agreements,” said Budi Gunadi Sadikin, Deputy Minister of state-owned enterprises. “Pertamina will also buy between 170,000 tonnes and 520,000 tonnes of LPG from ADNOC,” he further added.
“Indonesia’s state power utility Perusahaan Listrik Nehara (PLN) would sign a power purchase agreement with renewable energy firm Masdar from a 145 megawatt floating photovoltaic power plant the two companies are building in Cirata, West Java,” said Sripeni Inten Cahyani, Director at PLN. “PLN will pay 5.8 cents per kilowatt-hour generated by the power plant for 25 years, beginning when the plant becomes operational in 2022,” she added. Inalum, Indonesia’s state mining holding company will sign a memorandum of understanding with Emirates Global Aluminum on a pilot project to increase Inalum’s production capacity according to a company spokesperson. During Sheikh Mohammad’s visit to Indonesia, last year, Indonesian and UAE companies signed agreements worth a total of $9.7 billion.