News Room - Business/Economics

Posted on 29 Sep 2009

Indonesia, China sign MoUs on infrastructure project cooperation

Indonesia and China have agreed to step up cooperation in infrastructure and water resource development as marked by the signing of two memorandums of understanding (MoUs).

 

The MoUs were signed by Djoko Kirmanto, Indonesian Public Works Minister, Li Shenglin and Chen Lei, respectively of the Chinese transportation ministry, and irrigation ministry, in Beijing recently.

 

The MoU on road and bridge infrastructure construction was signed on September 25, 2009, and the MoU on water resource cooperation on September 26, 2009, both in Beijing, according to Indonesian Ambassador to China Sudrajat in a press statement received by ANTARA News here on Sunday.

 

The road and bridge infrastructure projects would be constructed with the support of a preferential buyers credit facility of the Chinese government, the ambassador said.

 

The projects will include the Musi III bridge in South Sumatra, Tayan bridge in Kalimantan, Kendari bridge in Southeast Sulawesi, Medan-Kualanamu toll road in North Sumatra, and Coleunyi-Sumedang-Dawuan toll road in West Java.

 

The cooperation in the infrastructure development would also include transfer of technology, such as that in the implementation of the Suramadu (Surabaya-Madura) bridge project in East Java, he said.

 

The water resource development cooperation will cover a dam project in Aceh, Indonesia`s northern-most province.

 

The Jambu Aye dam project in Aceh would provide an irrigation for local farmers, in anticipation of floods, and supplying hydro-electricity a power plant in Aceh, according to Ambassador Sudrajat.

 

Indonesia and China have been working on the construction of a dam in Jatigede, West Java, he said.

 

The governments of Indonesia and China decided to speed up the construction of Jatigede dam, and begin with building of the Jambu Aye dam in Aceh, the ambassador said.