Call Us Now +62 21 390 8271
Call Us Now +62 21 390 8271
[News] India Pursue Better Investment In Indonesia
Posted at: 04 April 2018

Coordinating Board (BKPM), India invested USD $285.4 million in Indonesia in full-year 2017. It is a relatively small amount but it does imply 418 percent growth rate from USD $55.0 million worth of Indian investment in Indonesia in the preceding year. Thus, India jumped from 23rd to 16th in the ranking of biggest foreign investors in Indonesia.

The latest example is India-based Adani Ports, part of the Adani Group (an integrated infrastructure corporation). The company is set to become the operator of Indonesia's new Cilegon container port (located in the Banten Province). Indonesian Transportation Minister Budi Karya Sumadi said Adani Ports will partner with a local company to operate the Cilegon port. However, he refrained from mentioning the name of the Indonesian partner. But Sumadi did inform that it is a local conglomerate. In this partnership Adani Ports will have a minority interest.

Construction of the Cilegon container port, which will have a capacity of 2 million twenty-foot equivalent units (TEUs), is expected to start in 2018. Sumadi added that investment will be no less than IDR 5 trillion (approx. USD $365 million).

The presence of foreign port operators in Indonesia should lead to healthier competition in the port sector, Sumadi said. This will then boost efficiency and improve the level of services of port operators.

A breakdown of the BKPM data show that most Indian investment in Indonesia in full-year 2017 went into the wood processing industry (USD $243.1 million), followed by the food and beverage industry (USD $7.12 million), the textile industry (USD $5.43 million), and transportation (USD $2.39).

The biggest Indian investors in Indonesia are the Tata Group, Essar Group, Coal India Limited, Bharat Heavy Electricals, and Steel Authority of India Limited.

(Source: Indonesia Investment)