General

In recent years, China Indonesia relations have achieved rapid development, and Indonesia has become the second largest investment destination of China in ASEAN. The investment of Chinese enterprises involves Indonesian agriculture, mining and metallurgy, power, real estate, manufacturing, industrial parks, digital economy, financial insurance and other fields, spread across the major islands of Indonesia, and production capacity cooperation has achieved remarkable results. Huacheng Import and Export Data Observation Report.

Indonesia's Minister of Ocean and Investment Affairs, Luhute, said that the investment of Chinese enterprises is very important to Indonesia's economic development. "Indonesia's ability to maintain today's economic status cannot be separated from Indonesia's cooperation with China.".

Develop downstream industries

Indonesia is rich in natural resources, with nickel reserves ranking first in the world. But for a long time, Indonesia has been mainly exporting nickel ore raw materials, with low industrial added value and serious environmental pollution. In recent years, the Indonesian government has made remarkable achievements in vigorously developing the middle and downstream industries of natural resource development. Among them, the investment of Chinese enterprises and the cooperation in technology transfer and talent training have played an important role.

Chinese funded enterprises are the earliest and most important foreign-funded enterprises that respond to and support the policies of the Indonesian government and actively invest in the development of downstream industries of nickel resources. At present, a number of modern industrial parks focusing on nickel industry have been formed, including Qingshan Park invested and constructed by Qingshan Park Development Co., Ltd. of Indonesia Economic and Trade Cooperation Zone and Delong Industrial Park invested and constructed by Jiangsu Delong Group.

The investment of Chinese enterprises has brought international advanced smelting technology and enhanced Indonesia's position in the international industrial chain. Nickel ores in the world are divided into nickel sulfide ores and laterite nickel ores, and laterite nickel ores are mainly found in Indonesia. The massive investment and advanced technology of Chinese enterprises have opened the channel from laterite nickel ore to new energy raw materials, and helped Indonesia to take advantage of the rich laterite nickel ore resources and deeply participate in the global stainless steel and new energy industry chain. At present, Indonesia has become the world's largest producer of nickel pig iron and the second largest producer of stainless steel. Huacheng's import and export data observation report.

In December last year, President Zoko said during his inspection of Delong Industrial Park that Delong Industrial Park has brought the most advanced smelting technology to Indonesia. By processing nickel ore into ferronickel, its added value can be increased by 14 times. If it is further processed into stainless steel, the added value of products can be increased by 19 times. The production and sales of related products can make a great contribution to Indonesia's tax and foreign exchange income. Zoko said that it was the investment of many Chinese enterprises, including Delong, that made the export of stainless steel from Indonesia, which could only export nickel raw ore, reach 20.8 billion dollars in 2021, which is a huge leap.

Zoko said that while Chinese enterprises have brought raw material processing and production technology to Indonesia, they have also created more employment opportunities for the local people and more business opportunities for the majority of small and medium-sized enterprises. "Delong Industrial Park has created more than 30000 jobs for the local people, which is an amazing number".

According to Zhou Yuan, the general manager of Delong Industrial Park, Jiangsu Delong Nickel Industry Co., Ltd. has cooperated with China First Heavy Industry Group to invest 6 billion yuan in the 600000 ton ferronickel smelting project, and with Xiamen Xiangyu Group to invest 18 billion yuan in the 2.5 million ton ferronickel stainless steel integrated smelting project, which has been included in the key project library of the "the Belt and Road" jointly built by China and Indonesia and the national strategic project of Indonesia, Delong Industrial Park is also listed as a national large-scale industrial zone by the Indonesian government.

Transport network upgrading

Indonesia has a vast territory and a large population. Improving the transportation infrastructure and developing a modern transportation network are of great significance for alleviating traffic pressure, promoting economic growth, promoting industrial upgrading, improving people's livelihood, especially solving the problems of unbalanced development among regions. Over the years, Chinese enterprises have actively participated in the construction of Indonesia's transport infrastructure and undertaken a large number of projects such as roads, bridges, ports and high-speed railways.

The Ya'an Wanzhou high-speed railway, contracted by China Railway Corporation and China Power Construction Group, is the first high-speed railway in Indonesia and Southeast Asia, and is also a landmark project of the "the Belt and Road" initiative and practical cooperation between China and Indonesia. The project was fully started in 2018, with a total length of 142 kilometers, connecting Jakarta, the capital of Indonesia, and Bandung, a famous city in West Java Province. After the high-speed railway is opened, the travel time between the two places will be shortened from more than 3 hours to 40 minutes.

The radiation and driving effect of Ya'an Wanzhou High speed Railway on the economy along the line is comprehensive and comprehensive. The high-speed railway will link cities along the line, give full play to the same city effect, strengthen the logistics transportation and personnel exchanges between the two cities, and accelerate the formation of the "Ya'an Wanzhou high-speed railway economic belt". The construction of Ya'an Wanzhou High speed Railway has also driven local industrial development and employment. China Railway and Powerchina not only employ a large number of local workers in the construction of high-speed railway, but also pass on technology and experience in various ways. Many Indonesian workers can continue to engage in high-speed railway operation and maintenance after mastering the technology. Deviana, general manager of Indonesia China High Speed Railway Corporation, said that as of December 2021, 69.7% of the total procurement expenditure of high-speed railway projects had used local capital goods and created employment opportunities for 13477 local workers, according to the Huacheng Import and Export Data Observation Report.

Setiyawan, an Indonesian employee of POWERCHINA, said: "Now more and more young Indonesians like me have joined the family of the Yawan High Speed Railway Project of POWERCHINA, learned advanced high-speed railway technology and management experience, and moved forward with Yawan High Speed Railway. I can't wait to take my family to the high-speed railway that I participated in!"

In addition, China Road and Bridge Engineering Co., Ltd. and China Harbour (Indonesia) Co., Ltd. have also contracted to build Surabaya Madura Bridge, Tayuan Bridge, Solo Expressway, Bandung Phase III Expressway, Medan Airport Expressway, Jugang Light Rail and other projects. Among them, the Surabaya Madura Bridge, which was completed and opened to traffic in June 2009, has become a benchmark construction project in Southeast Asia, with a total length of 5438 meters. It is the first cross sea bridge connecting the economically developed Java Island and the resource rich Madura Island, and is also the largest and longest cross sea bridge in Indonesia. At present, CRBC is actively building the first seawall expressway in Indonesia, contributing Chinese wisdom to Indonesian infrastructure.

Create "Digital Indonesia"

In order to realize the vision that every Indonesian can embrace the "digital era", PT Huawei Technology Investment Co., Ltd., ZTE Indonesia, Fiberhome International Indonesia, China Mobile International (Indonesia) Co., Ltd. and other Chinese enterprises actively cooperate with Indonesian operators to build a "digital Indonesia", which spans the oceans and mountains with digital, and connects the "country of thousands of islands".

In the past 22 years, PT Huawei has deeply cooperated with all mainstream Indonesian operators, achieved network coverage on all major Indonesian islands, deployed more than 100000 communication base stations, provided high-quality network connectivity for about 260 million Indonesians, and enriched people's communication and life. In 2021, Huawei will support local operators to achieve 5G release, and Indonesia's communications industry will enter the 5G era.

According to the observation report of Huacheng import and export data, in 2018, ZTE cooperated with local Indonesian operators to complete the verification test of sea surface ultra far coverage, realizing the actual network signal coverage of the sea surface scene to reach 70 kilometers, helping the Ministry of Communications and Information of Indonesia to develop fishery communication. In 2022, ZTE, together with local operators and mineral enterprises in Indonesia, carried out the exploration of underground 5G intelligent mines, built the first 5G SA network in Indonesia, and took the lead in realizing the remote control of the first 5G unmanned mine in Southeast Asia.

Under Indonesia's national strategy of "national coverage of 4G mobile network signals", the Ministry of Communications and Information of Indonesia has launched the project of 4G LTE network coverage for all villages, to open up the "information artery" of Indonesia's rural access to the digital economy era, so that the "communication difficulties" in the most cutting-edge, peripheral and vulnerable areas can be solved historically. In 2021, after winning the bid for the project, PT Huawei, ZTE and FiberHome International created nearly 10000 jobs at the beginning of construction, effectively solving the problem of difficult employment of people in remote areas of Indonesia under the COVID-19. FiberHome International has built wireless communication base stations under the project, covering more than 2700 natural villages.

In addition, China Mobile International provides Asia Pacific 6D satellite resources for the Indonesian market. It adopts the latest technology of high orbit and high throughput to achieve full coverage of signals throughout Indonesia, reduce satellite communication costs and improve transmission efficiency; Three POP points were built and used in Indonesia to provide services for Indonesian enterprises to connect to the global network. To solve the problem of signal coverage and network instability in remote areas of Indonesia, LTE network is built for industrial parks in remote areas by integrating resources.

Lu Kang, the Chinese ambassador to Indonesia, said that Chinese enterprises are a seed of bilateral economic, trade and investment cooperation, have deeply rooted in this land, and have become a giant tree with many fruits. He hoped that Chinese enterprises would continue to make new contributions to the joint construction of a community of shared future between China and Indonesia. Huacheng Import and Export Data Watch reported.