Russia, Indonesia plan partnerships to boost trade, investment

Indonesian and Russian officials and companies have pledged to boost trade and investment between the two countries.

Hatta Rajasa, Indonesia’s coordinating minister for economic affairs,said that the two governments have formed 5 working groups that will talk on various partnerships, ranging from trade and investment to tourism and energy.

“Trade between our two nations in the past 5 years has been increasing by an average 29.7% per year. In 2012 it reached $3.4 billion and we have agreed to increase it to $5 billion in 2015,” Hatta said.

“On the investment side, there is a potential of $5 billion to $6 billion investment this year from Russia,” he said, adding that two companies, Russian Railways and Rusal, have agreed to invest in the country.

According to Hatta, Russian Railways, Russia’s largest railway and locomotive company, is investing about $2 billion on a railway in East Kalimantan.

Rusal, one of Russia’s largest aluminum producers, has also agreed to invest up to $3 billion to build an alumina plant in West Kalimantan, he said. According to Rusal, it has chosen Arbaya Energi as its local partner.

Kamaz, Russia’s largest truck manufacturer, is also planning to build an assembly plant for its vehicles in Indonesia.

Dmitry Rogozin, deputy prime minister of the Russian Federation, said that Russia sees big potential for further economic partnership with Indonesia.
Valery Krasnov, chairman of the board at Vi Holding, one of Russia’s largest mining groups, said that the company is considering investment in bauxite and nickel.