Russia and Indonesia Launch a number of Common Projects
On November 16, 2015 in Manila Minister of Economic Development of the Russian Federation Alexey Ulyukaev conducted negotiations with Minister of Trade of the Republic of Indonesia Thomas Lembong, the negotiations were held within a joint meeting of APEC Ministers of Foreign Affairs and Ministers of Trade.
Alexey Ulyukaev noted that Indonesia among APEC economies was one of the key partner for Russia. “We are aimed at a further strengthening of trade and economic relations with Your country taking into consideration current Russian-Indonesian dialogue during the international meetings,” he said.
However, Russian-Indonesian commodity turnover is decreasing in the face of general geopolitical tension, depreciation of national currencies and economic activity in our countries, and poor energy market conditions. The bilateral commodity turnover for nine months of 2015 has decreased by 24.3% compared with the same period in 2014. “In order to improve the situation we must realize existing Russian-Indonesian projects and look for new growing points,” the Head of Russian delegation Alexey Ulyukaev said.
He mentioned the largest projects within bilateral cooperation. The most ambitious among them is the construction by JSC Russian Railways a railway and related infrastructure for coal transportation on Borneo island that Russia begins on November 20, 2015. “As for large projects, we have progressed here. The project of railway construction on Borneo was in the beginning intended only for coal but it will be restructured into a universal railway. The construction is beginning on November 20, the grand opening is planned, everything goes well,” he informed. The project contemplates starting a 217 km long railway from West Kutai Regency to seaport Balikpapan for transporting more than 20 mln tons of coal and other cargo yearly. The financing of the project will include two stages: the first one – it is planned to raise up to 200 mln US dollar of share capital, mainly from Russian investors; the second one – after the completion of project works – it is planned to raise about 700 mln US dollar as debt-based project financing. According to the project, in the fourth quarter of 2016 the port will provide services of coal storage and blending, export of wood and palm oil from the region. The project is to be completed in 2020.
Minister of Economic Development of Russian Federation paid special attention to bilateral cooperation in the sphere of nuclear energy use. In September Rosatom Overseas signed with the National Nuclear Energy Agency of Indonesia (BATAN) memorandum on the projects of construction of high capacity nuclear power stations and floating nuclear power stations. “Indonesia is very interested in floating nuclear power stations that are rather attractive for such island country from the ecological and logistics points of view,” Alexey Ulyukaev added.
In April 2015 National Corporation “Rosatom” won a tender of the first stage of construction of an experimental nuclear reactor with the capacity of 10 MW in the town of Serpong (Java island). “Besides the construction itself Russia pays much attention to nuclear waste handling and personnel training,” Minister emphasized.
Minister also marked the cooperation between Gazprombank and Indonesia Eximbank that is aimed at financing and servicing foreign trade transactions in Russian Rubles and Indonesian Rupiahs.
The parties discussed also the forthcoming meeting of Trade, Industry and Investments working group of Russian-Indonesian Intergovernmental Commission. Together with this meeting there will be organized the visit of business delegation of Russian companies. “A large delegation will come to Jakarta. It will consist of the representatives of key Russian companies realizing their projects in Indonesia and those interested in it,” Alexey Ulyukaev noted.
In conclusion the Head of the Ministry of Economic Development invited Thomas Lembong and Indonesian businessmen to take part in St. Petersburg International Economic Forum that will be held on June 16-18, 2016. During the Forum there will be discussed the perspectives of world and regional economy development (Asia Pacific, Europe, Russia, etc.) in the context of geopolitical challenges, the problems facing the governments of the world powers and their unions and capability of the leaders to solve these problems. “The platforms like SPIEF are of key importance today. The participation of the world leading economies representatives and the heads of the biggest companies will enhance confidence between us. The development in the modern global world is impossible without it,” he said.