China invests US$2.54 billion in steel plant in Central Java

July 27, 2018

IRFAN ILMIE  ANTARA NEWS - 25/07/2018, 08:36 WIB

Beijing, China (ANTARA News) - China-based steel company Hebel Bishi Steel Group has invested US$2.54 billion in Central Java Province, Indonesia, to build a steel plant to have a production capacity of three million tons.

"That will be the first phase of investment in Kendal (Central Java)," Deputy Governor of Central Java Heru Sudjatmoko was quoted as saying by Antara correspondent in Beijing, on Tuesday night.

Apart from the steel plant, the investment fund would also be used to set up a coking coal plant with 2.4 million ton capacity, power plant with 270 megawatt capacity, and port`s support facility with 100 DWT capacity.

Hebel Bishi Steel Group has partnered with Indonesia`s PT Seafer Kawasan Industry in investing their fund in Central Java.

"Central Java is one of backbones of Indonesia`s economy. So, when Chinese business wants to invest, we are ready to assist until it is done," Sudjatmoko noted.

He added that the Central Java government had promised the Chinese business sector to ease investment permit procurement.

"The success of investors is our success. The success of infrastructure development will benefit the community as well," he remarked.

Director of Hebei Industry Group Deng Ji expressed his willingness to make their investment into real soon in Seafer Kendal industry complex in Kendal, Central Java.

"We have signed the agreement, and we want to make it real soon, even if it is possible we would like to invest more in Central Java," he noted.

Deng Ji remarked that Hebei`s investment in Central Java is one of pilot projects of Chinese "One Belt One Road" initiative in Indonesia.

From his Indonesian counterpart, President Director of PT Seafer Kawasan Industry Harry W Sudarwo, claimed that he had allocated a 700-hectare land for the investment project.

"The land had been prepared and permit is already in our hand," Sudarwo said.

The signing of agreement between Hebei Bishi Industry and PT Seafer Kawasan Industri took place in Beidahe, Hebei Province, on Monday, and witnessed by Indonesian Ambassador to China Djauhari Oratmangun, Deputy Governor of Central Java Heru Sudjatmoko, and head of Kendal District.