Kadin: Russian Firm Plans to Invest $3b in Indonesia

By Primus Dorimulu on 8:50 am October 8, 2013.
Category Business, Economy
Tags: APEC, foreign investment, Indonesia-Russia, Indonesian Chamber of Commerce and Industry Kadin

Nusa Dua, Bali. Basic Element, a diversified conglomerate owned by Russian billionaire Oleg Deripaska, plans to invest up to $3 billion in Indonesia, according to Suryo Bambang Sulisto, the chairman of Indonesian Chambers of Commerce and Industry, or Kadin.

Basic Element is involved in five sectors — manufacturing, construction, energy, finance and aviation businesses — and according to its website, it has a presence in 21 countries in the world, in addition to its strong presence in Russia.

Deripaska was among the 1,200 investors who attended the APEC summit taking place in Bali.

“Most investors I met said they are interested in Indonesia and want to invest here. It is just a matter of a firm response from the government,” Suryo said.

“Don’t let this APEC summit just be a venue to hang around in without any real outcome,” he added.

Basic Element does not have a presence yet in Indonesia. The nearest location is a business operating in Queensland, Australia. The conglomerate employs around 250,000 people from its operations in Russia, the Commonwealth of Independent States of former Soviet Union countries, Africa, Australia, Asia, Europe and Latin America. Russia is a member of APEC.

Suryo did not provide details on Basic Element’s investment. However, in September last year, Indonesian Industry Minister M.S. Hidayat said Russian companies like U.C. Rusal, the world’s biggest aluminum producer, and Norilsk Nickel, a global mining and metallurgical company, planned to invest in Indonesia.

Hidayat at the time said Rusal — one of the major assets of Basic Element — had surveyed parts of Indonesia and was considering investing in a $1.5 billion aluminum smelter next year.

President Susilo Bambang Yudhoyono met Russian investors last year during the APEC summit in Vladivostok.

The Jakarta Globe