List of Investments Achieved by Indonesia on the Sidelines of the G20 Summit

The highlight of the G20 Summit will be held from 15 to 16 November 2022. It is noted that there have been several investment commitments made by foreign investors to Indonesia in this event.

Investment

1. United States

US President Joe Biden announced the amount of investment in Indonesia, including an agreement of US$2.5 billion or the equivalent of IDR 38.82 trillion (assuming an exchange rate of IDR 15,529 per US dollar) between ExxonMobil and Pertamina.

The investment made by the US took the form of an agreement between ExxonMobil and Pertamina. The collaboration will further assess the development of regional carbon capture and sequestration centers in Indonesia.

It is also claimed that the reduction in carbon emissions in US investment will ensure economic opportunities for Indonesian workers and help RI’s goal of achieving net-zero emissions by 2060 or even sooner.

Not only that, the US and Indonesia also agreed to launch the US$698 million Millennium Challenge Corporation (MCC) program to help support the development of climate-conscious transportation infrastructure in five Indonesian provinces as well as other development goals.

The details of the funds in the MCC program cooperation are US$ 649 million contributed by the US and the remaining US$ 49 million disbursed by the Government of Indonesia.

2. China

The investment agreement also occurred at the B20 Investment Forum which took place from 13-14 November in Nusa Dua, Bali.

The Ministry of Investment signed a memorandum of understanding (MoU) with CNGR Advanced Material Co Ltd., a ternary precursor manufacturer from China, to support the development of the electric vehicle ecosystem in Indonesia. The signing of this cooperation has an investment value of US$ 5 billion.

The signing was carried out by Secretary of the Ministry of Investment Ikmal Lukman and Chairman of CNGR Advanced Material Co Ltd Deng Weiming and witnessed by Minister of Investment Bahlil Lahadalia.

Under the MoU, the Ministry of Investment will be responsible for assisting CNGR Advanced Materials to obtain all project permit issuance, including investment incentives from the government.

Bahlil emphasized the government’s commitment to the success of the electric vehicle ecosystem program, including through cooperation with the precursor manufacturers.

In addition, B20 Chairperson Shinta W Kamdani revealed that 18 companies from 11 countries signed a Memorandum of Understanding (MoU) for investments in the EBT and clean energy sectors with a total value of IDR 75 trillion.

He ensured that the implementation of B20 had an impact on increasing Indonesian investment, not only by producing policy recommendations.

He is also optimistic that the investment achievements will continue through other investment agreements that can be beneficial through collaboration with the global business sector.

3. Japanese and English

Meanwhile, the Minister of Transportation Budi Karya Sumadi claims that Japan and the UK are interested in participating in the Jakarta MRT urban mass transit development project.

This was marked by the signing of a memorandum of understanding between the Indonesian Government and the Japanese Government and the British Government in Nusa Dua, Bali, Monday (14/11).

The signing was attended by Budi Karya, Deputy Minister for Japanese Foreign Cooperation Satoru Mizushima, British Ambassador to Indonesia and Timor Leste Owen Jenkins, and Acting Governor of DKI Jakarta Heru Budi Hartono.

The MoU that was signed, namely the first, was a Memorandum of Cooperation (MoC) between Indonesia and Japan regarding the continuation of the MRT Jakarta East-West Line Phase 1 development. Second, said Budi Karya, a Letter of Intent (LoI) between RI and the UK regarding MRT Development Cooperation Jakarta.

According to him, currently many countries want to invest in the development of transportation infrastructure in Indonesia, especially the MRT.

4. Deal with Turkey

It didn’t stop there, Indonesia and Turkey entered into a bilateral agreement regarding the production of electric buses in the country and the construction of the Trans Sumatra toll road.

For electric buses, electric bus manufacturer Karsan from Turkey cooperates with PT. Schahmindo Perkasa (Credo Group). Meanwhile, the Trans Sumatra toll road project is carried out between PT Hutama Karya and the Turkish contractor, ERG Insaat.

The signing between the business world was witnessed by PUPR Minister Basuki Hadimuljono and Turkish Foreign Minister Mevlut Cavusoglu.

Agreements were also made between the government by signing cooperation on defense, environment, forestry, technology research and innovation, as well as development cooperation assistance.

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