Indonesia’s top economic minister said he hoped US President Barack Obama’s visit would encourage investment in renewable energy and heavy machinery, noting that US investment this year through September outside of oil and gas had jumped to $871 million.
“We want a technology transfer and hope there is investment in renewable energy management,” Hatta Rajasa, coordinating minister for the economy, said on Tuesday just before the US president landed for his two-day trip.
“We also hope the US will invest in our railway sector, which is clearly behind.
“Companies such as General Electric or Caterpillar could open a locomotive factory here.”
Hatta said US investment in Indonesia had been increasing over the past few years.
The value of US investments, excluding oil and gas, had reached $157 million in 2008, rising to $171 million last year before making a big jump in 2010 as foreign investors capitalized on strong economic growth here.
“Investment [from the US] increased rapidly outside the oil and gas,” Hatta said, without elaborating on which sectors were the top recipients.
Trade Minister MS Hidayat projected that US non-oil and gas investment in Indonesia would hit a record high of $1 billion in the next few years, and he said the government would encourage US companies to invest more in heavy machinery.
Caterpillar, which already has a factory here making mining equipment, plans to invest $500 million in Indonesia next year, he said.
Analysts said that building a stronger relationship with Indonesia would help the United States handle a rising China.
US officials say Obama’s stop in Indonesia underscores his goal of boosting exports to create jobs.
Enlarging overseas markets for US companies is a central theme of Obama’s four-country tour of Asia that began in India on Saturday.
Hatta said the United States was an important export destination for Indonesia, and there were opportunities that could be developed for the benefit of both nations.
“In trading volume and destination of our exports, the US was ranked second and always gives a trade surplus to Indonesia.”
He expects the balance of trade between Indonesia and the United States to recover this year to $21 billion, the same level as 2008, after falling to $18 billion of two-way trade last year.
He said Indonesia’s trade surplus with the United States was expected at $5 billion this year.
No comments:
Post a Comment