Rosan Roeslani, Chairman of Indonesia's Chamber of Commerce and Industry (Kadin Indonesia), is optimistic that investment from the Netherlands into Indonesia will continue to grow in the years ahead as the Indonesian government has been focused on improving the investment climate of Southeast Asia's largest economy. President Joko Widodo's visit to the Netherlands (22-23 April 2016) resulted in about USD $606 million worth of Dutch investment commitments, signed on Friday (22/04) in The Hague.
Dutch solar power solutions provider Hyet Solar BV signed a Memorandum of Understanding (MoU) - worth USD $185 million - with Indonesian steel construction firm Duta Cipta Pakarperkasa for the development of a solar panel factory in Surabaya (East Java). Meanwhile, EWINDO (a joint venture between East-West Seed and Enza Zaden) signed a MoU with the Salim Group; a deal worth USD $10 million that aims to enhance the development of the high-quality potato seed industry. This MoU is regarded an important step for the development of Indonesia's domestic potato industry as well as for the raising of Indonesian farmers' welfare.
Furthermore, Dutch Tidal Bridge BV signed a USD $400 million MoU with Pembangkit Listrik Jawa Bali, the local government of East Nusa Tenggara, Indonesia's Ministry of Public Works & Housing, and Indonesia's Ministry of Energy and Mineral Resources for the development of the Pancasila Palmerah (suspension) bridge in East Nusa Tenggara, which will connect the islands of Flores and Adonara over the Larantuka Strait. This bridge will be equipped with tidal wave turbines capable of generating up to 30 MW of electricity per hour. The bridge will have a length of approximately 1.3 kilometers.
Lastly, STC Group Holding BV signed a MoU with MCS International (subsidiary of Humpuss Intermida Transportasi) worth 11.2 million for the development of human resources in Indonesia's maritime industry.
Roeslani said that these investment commitments from the Netherlands reflect foreign investors' confidence in the prospects of Indonesia's economic growth amid the sluggish global economy. The recent series of economic stimulus programs unveiled by the Indonesian government as well as the government's decision to open up various sectors to foreign investment have managed to make Indonesia a more attractive destination for foreign direct investment. He added that one of the key issues that Indonesia has to work on is the lack of high quality human resources.