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Russia-ASEAN summit 2016

Indonesia interested in Russian investment in infrastructure and oil refining

Indonesian President Joko Widodo on Wednesday held talks with his Russian counterpart Vladimir Putin

Indonesian President Joko Widodo Alexey Druzhinin/TASS

Indonesian President Joko Widodo

© Alexey Druzhinin/TASS

SOCHI, May 18. /TASS/. Indonesia is interested in Russian investment in infrastructure, including railway construction and the construction of the port in Kalimantan (Borneo) and oil refining, Indonesian President Joko Widodo said on Wednesday after the talks with his Russian counterpart Vladimir Putin.

"We have agreed to increase investment cooperation," he said. "We are interested in Russian investment in areas such as marine culture, agriculture and infrastructure, we are interested in development and continuation of projects in the railway construction and the construction of the port in Kalimantan, in oil refining projects," the President added.

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According to him, issues related to strengthening cooperation between the two countries "in such strategic areas as economic and investment relations, military cooperation" were also discussed during the meeting. "We are confident that we can significantly increase and strengthen our economic cooperation," Widodo said.

Widodo added that the parties agreed to try to remove obstacles of tariff and non-tariff nature in the mutual trade. At the same time, according to him, Indonesia is especially interested in the export of palm oil to the Russian market.

In turn, Russian President Vladimir Putin said that Russia is ready to provide comprehensive assistance to Indonesia in implementation of infrastructural programs. "A large-scale regional infrastructural program is implemented under patronage of Mr. Widodo," Putin said. "Russia is ready to render comprehensive assistance to Indonesian partners in implementation of this program" he added.

A joint project of Russian Railways and Indonesia launched last year to build an approximately 190 km long railway on the Kalimantan Island is the most significant in this context, the Russian leader said. Development of coal, ferronickel, manganese dioxide and other deposits is planned, he added.

At the same time, the volume of investment in oil refinery construction in Indonesia with the participation of Rosneft could reach $13 bln. "Our companies Zarubezhneft, Rosneft have specific, serious large-scale projects," he said. "That includes construction of a modern oil refinery with possible investment in the amount of $13 bln," he added.

According to the Russian leader, there is groundwork for expanding energy cooperation. Putin said construction of a thermal power plant with the help of Inter RAO with a capacity of 1.8 GW is also planned. The investment volume will amount to $2.8 bln.

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Oil & Gas Russia-ASEAN summit 2016

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