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Russian Firms Set to Invest in Indonesia
Edited by : AL CIRCLE
2 min read
Russian companies UC Rusal, the world’s biggest aluminium producer, and Norilsk Nickel, a global mining and metallurgical company, plan to build smelters in Indonesia, a government minister says.
“The commitments were delivered in a meeting between President Susilo Bambang Yudhoyono and CEOs of the two Russian companies on the sidelines of the Asia-Pacific Economic Cooperation summit in Russia last week,” Industry Minister M.S. Hidayat said in Jakarta on Wednesday.
He added that Rusal, which controls 10 percent of the world aluminium market, has surveyed parts of Indonesia and is considering investing in a $1.5 billion aluminium smelter next year.
“The manager that met ... Yudhoyono was Rusal CEO Oleg Deiripaska. It was said that they will invite a local partner, which could be a state-controlled company,” Hidayat said.
Meanwhile, Norilsk, one of the biggest mining companies in Russia, is ready to build smelters for nickel and copper, the minister said.
Norilsk will also cooperate with a local company, but is yet to reveal the size of the planned investment. “The person who met the president was its CEO, Vladimir Stzhalkovsky,” Hidayat said.
The chairman of Indonesia’s Investment Coordinating Board (BKPM), Chatib Basri, confirmed the news.
He said the two Russian companies were keen to invest in the smelter, heavy machinery, mining and refinery businesses. “The size [of the investments] has not yet been discussed, but it will be huge,” he said.
Chief Economics Minister Hatta Rajasa said Russian investors had committed to invest more than $5 billion in Indonesia. Yudhoyono’s meeting with the business leaders confirmed the commitment, he said.
In August, Russian Ambassador to Indonesia Alexander Ivanov said Russian investors expressed strong interest in investing in Indonesia.
Top investment plans include a railway project worth $2.5 billion in Central Kalimantan. Ivanov also said Russian companies were interested to build smelters.
Yudhoyono last week called on Russia, which hosted the Asia-Pacific Economic Cooperation forum in Vladivostok, and other APEC members to invest in Indonesia.
“The commitments were delivered in a meeting between President Susilo Bambang Yudhoyono and CEOs of the two Russian companies on the sidelines of the Asia-Pacific Economic Cooperation summit in Russia last week,” Industry Minister M.S. Hidayat said in Jakarta on Wednesday.
He added that Rusal, which controls 10 percent of the world aluminium market, has surveyed parts of Indonesia and is considering investing in a $1.5 billion aluminium smelter next year.
“The manager that met ... Yudhoyono was Rusal CEO Oleg Deiripaska. It was said that they will invite a local partner, which could be a state-controlled company,” Hidayat said.
Meanwhile, Norilsk, one of the biggest mining companies in Russia, is ready to build smelters for nickel and copper, the minister said.
Norilsk will also cooperate with a local company, but is yet to reveal the size of the planned investment. “The person who met the president was its CEO, Vladimir Stzhalkovsky,” Hidayat said.
The chairman of Indonesia’s Investment Coordinating Board (BKPM), Chatib Basri, confirmed the news.
He said the two Russian companies were keen to invest in the smelter, heavy machinery, mining and refinery businesses. “The size [of the investments] has not yet been discussed, but it will be huge,” he said.
Chief Economics Minister Hatta Rajasa said Russian investors had committed to invest more than $5 billion in Indonesia. Yudhoyono’s meeting with the business leaders confirmed the commitment, he said.
In August, Russian Ambassador to Indonesia Alexander Ivanov said Russian investors expressed strong interest in investing in Indonesia.
Top investment plans include a railway project worth $2.5 billion in Central Kalimantan. Ivanov also said Russian companies were interested to build smelters.
Yudhoyono last week called on Russia, which hosted the Asia-Pacific Economic Cooperation forum in Vladivostok, and other APEC members to invest in Indonesia.
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