Jakarta. Prosperity International Holdings of Hong Kong plans to invest up to US$1 billion in Indonesia’s coal, steel and cement industries and to create up to 5,000 jobs here.
Prosperity chairman David BK Wong said here on Wednesday that his group was interested in the country’s rich natural resources and big market.
“We are committed to investing between $500 million and $1 billion depending on what kind of opportunities and incentives are available,” he told The Jakarta Post and Kompas at the office of the Investment Coordinating Board (BKPM).
Wong added that with an investment target of up to $1 billion, he aims to create up to 5,000 jobs in the country. Wong and Prosperity CEO Mao Shuzhong met with BKPM deputy chairman Yus’an on Wednesday.
The Prosperity group has a large cement operation in mainland China, producing 21 million tons per annum. The company is also supplying iron ore to China. Mao noted that the Prosperity group had already invested $20 million in coal mining in Central Kalimantan.
It’s coal mining plant is expected to initiate trial shipping and exports in June this year, with an initial production of 3 million tons of high-grade coal per year. The company plans to boost production to 10 million tons annually during the next three to five years.
“We are also looking for the possibility to invest in steel mills and cement plant in Indonesia,” Mao said. Yus’an elaborated that Prosperity could invest in the cement industry in the country, especially where there are no cement plants but demand is rising fast, such as in East Kalimantan, Maluku and Papua.
Yus’an also said that Indonesia is also rich with iron ore, which could be of interest to Prosperity.
Wong said his company would continue to look for investment opportunities in Indonesia and suggested that the government provide attractive incentives to attract more investment.
“Remember China 20 years ago. It offered a lot of incentives to attract foreign investment. And it worked,” Wong said. “If Indonesia does the same by opening your doors wide open, you will become the driving force for Southeast Asia,” he
Source: The Jakarta Post – 04 February 2010
