Nusa Dua, Bali (ANTARA News) - State-owned oil company PT Pertamina secured the biggest investment worth US$6.5 billion from the Indonesia Investment Forum held as part of the 2018 IMF-World Bank Group Meetings.
State-Owned Enterprises Minister Rini Sumarno said here on Thursday that the investment would be used to build an international scale petrochemical raw material plant. Pertamina will build the plant in cooperation with Taiwanese oil and gas company COC Corporation.
"In the oil and gas sector, the cooperation project between Pertamina and CPC Taiwan is the biggest. They will build a nafta cracker in the petrochemical plant development project," he said.
Sumarno said products that would be produced are derivatives of crude oil that would give an additional value to Indonesia as it would reduce imports of raw materials worth US$2.4 billion a year, meaning Indonesia could save foreign exchange as much as the value to maintain the exchange rate of the countrys currency.
"We can save $2.4 billion. It could reduce imports," she said.
Besides Pertamina, Antam and Inalum also secured cooperation with Aluminium Corporation of China Limited (Chalco) in Mempawah, West Kalimantan, with investment amounting to $850 million. The cooperation agreement will also reduce imports to save up to $600 million in foreign exchange.
"In the downstream project of Antam and Inalum in Mempawah, they will change bauxite into alumina up to one million tons," she said.
Totally from the Infrastructure Investment Forum at the IMF-WB Meeting, Indonesia through 14 state-owned companies secured $13.5 billion.
Eighty percent of investment and financing agreements is in the form of a strategic partnership, while the rest is capital market investment and project financing.
PT Mandiri Sekuritas, the subsidiary of PT Bank Mandiri Persero Tbk, which was the coordinator of the Investment Forum, stated that the investment cooperation would allow 14 state-owned companies to get fresh funds from investors.
Mandiri Sekuritas Director Silvano Rumantir said that the cooperation agreement was not debt and so control of the project would remain in the hands of state-owned companies.
"What we would like to see is the benefit. We are re-standing, but it is not a debt. They get equity but control is still in the hands of state-owned companies," Rumantir said at a press conference at the Indonesia Investment Forum on Tuesday.
Source: ANTARA News