BKPM Attends Indonesia - Russia Business Forum

Strengthening Trade, Tourism and Investment Cooperation, BKPM Attends Indonesia - Russia Business Forum

In pursuance of obtaining more foreign direct investment to Indonesia, BKPM recently carried out one of its investment promotion activities in Moscow, Russia on July 31 - August 4, 2019. On this event, BKPM facilitated several regional government delegations to meet with Russian businesses, including the East Java regional government with the Moscow Chamber of Commerce & Industry (MCCI) and the Central Java regional government with Evrascon and Ant Group.

The meeting between the East Java regional governments with the representatives of the MCCI was held on July 31, 2019. In this meeting, the Indonesian delegation was received by Mr Suren Vardanyan, Vice President of MCCI. BKPM Regional Promotion Director Mr Indra Darmawan explained the main purpose of visit i.e. promoting the investment and trade opportunities in Indonesia especially from East Java, as well as attending the Indonesia – Russia business forum and festival in Moscow. He also conveyed that BKPM will always support the development of Russian investment in Indonesia, especially in the energy, infrastructure and tourism sectors. The representatives from East Java Province then presented about East Java’s economic development and its readiness in term of infrastructure support along with several investment opportunities: the Bromo Tengger Semeru area, Situbondo white sand marine tourism, Banyuwangi theme park, Singhasari Special Economic Zone, Ngawi Industrial Zone, and Sidoarjo waste-to-energy project.

Mr Suren Vardanyan welcomed the delegation and said that Russian businessmen have the technical expertise and the desire to invest in the sector offered. He also wished that the intensity of Russian businessmen visit to Indonesia would be higher especially after the direct flight between Moscow and Bali has been opened.

On the very same day, the BKPM delegation and the Governor of Central Java held a meeting with EVRASCON and Ant Group at Ritz Carlton Moscow. On this occasion, Mr Murat Karasogut, General Director of Asia Starch, explained about Asia Starch, a joint venture between Evrascon and Ant Group which is planning to build a corn starch, sweetener and animal feed processing plant in Cirebon, West Java, with investment value worth 300 million Euros. The plant will be the first phase of Asia Starch’s investment plan in Indonesia. The second phase is to build a wheat processing factory with an investment value worth 220 million Euros in Boyolali, Central Java. Evrascon and Ant Group then expressed the need for support from both Indonesia’s central and regional governments to realize their investment plan in Indonesia.

The next day, BKPM participated as one of the panelists in the Indonesia-Russia business forum event. The forum aimed to strengthen economic relations between the two countries, especially in the trade, tourism and investment sectors through the theme “Towards Indonesia – Russia Strategic Partnership: Bridging Fruitful Collaboration through Tourism, Trade and Investment”. The forum was attended by 500 participants and presented some key speakers including the Head of the Indonesian Creative Economy Agency; Deputy of Marketing Development II from the Ministry of Tourism; and the panelists namely the Governor of Yogyakarta; the Governor of Central Java; and the Governor of West Sumatra. Speakers from Russia were the Vice Minister of Industry and Trade of Russia, President of the Russian Union of Industrialists and Entrepreneurs, Vice President of the Chamber of Commerce and Industry of the Russian Federation, and Chairman of Russia - ASEAN Business Council.

In the “Infrastructure and Energy: How Indonesia and Russia Collaborate” session, Mr Indra Darmawan explained the Indonesia economic development and investment policies that are pro-business, such as providing incentives and implementing more business-friendly regulations. Mr Indra then described the role of BKPM in facilitating investment interest in the infrastructure and energy sectors and spread information about several national ready-to-offer infrastructure projects. The session also presented regional government representatives from Aceh, West Java, Riau Islands and East Java, each of whom explained the potential and investment opportunities in the respective regions.

On the sidelines of the business forum activity, Mr Indra Darmawan also had the opportunity to meet one of the potential investors engaged in tourism, Mr Dmitriy Kaznin, CEO of Bali Investment Trust. During the meeting, the Bali Investment Trust expressed their hope to receive full support from the central and regional government of Indonesia, with regards to their investment plans in the tourism and real estate mining sector in Bali and its surroundings amounting to USD 100 million.

In addition, BKPM also actively participated in providing information on investment licensing regulations and procedures in Indonesia to the booth visitors as part of the Festival Indonesia activities held on August 2 - 4, 2019 in Krasnaya Presnya Park, Moscow.