Indonesia turns to China for keeping economic growth

Indonesian President Joko Widodo. (Source: EPA/VNA)

Jakarta (VNA) – Indonesia has been seeking closer economic ties with China to drive its economic growth in the context of the slowdown of the world’s economy, according to the Jakarta Post.

The newspaper said Indonesia has been struggling to maintain its economic growth at around five percent in recent years. Meanwhile, the International Monetary Fund (IMF) said China was still the largest driver of the world economy, contributing 1.2 percent to the world’s economic growth in 2016.

Indonesia’s Investment Coordinating Board (BKPM) has established a special division providing all services in Chinese to facilitate Chinese investors.

The general secretary of the Chinese trade office in Indonesia said Chinese investors are very interested in production, e-commerce and nickel mining in Indonesia.

At least 200 Chinese enterprises are operating in Indonesia, with around 30 investing in mining and the remaining in electricity, electronics, agriculture, and logistics.

According to BKPM statistics, China’s investment in Indonesia increased 291 percent to reach 1.5 billion USD in the first nine months of 2016.

China is one of Indonesia’s leading trade partners with two-way trade value hitting 45.8 billion USD in 2016. VNA