China provides 250 million US dollars for RI

Antara News, Wednesday, October 20, 2010 22:42 WIB

Beijing (ANTARA News) - The Chinese government disbursed 240 million US dollars for trade and investment under a funding agreement between Indonesia and Exim Bank with the Industrial and Commercial Bank of China.

"The 250 million US dollars bring the total which had earlier been mentioned by Minister of Trade Mari Elka Pangestu to 350 million US dollars," president director of the Indonesian Eximbank I Made Gde Erata said after signing an agreement in the presence of Vice President Boediono and his Chinese counterpart Xi Jinping at Great Hall of the People in Beijing, here on Wednesday.

Gde Erata said the funding cooperation covers an increase in trade, investment, and finance between the two countries. The cooperation covers an increase in trade of mechanical and electronic products, technological products, energy and raw materials.

The cooperation is also to support infrastructure and energy projects in the two countries or those set up by Indonesian or Chinese companies. The funding is also aimed at supporting construction projects built by the two countries.

"It was also aimed at supporting the small and medium business companies in Indonesia and China. The funding loan from the ICBC to the Indonesian Eximbank was also meant for projects relating to the two institutions," he said. The loan for small and medium businesses was already been explored by Indonesian textile associations.

With regard to interest, he said it has not been set as it will be discussed by the textile team. But it is estimated at more than 10 percent.

A similar statement was made by Mari Elka Pangestu prior to signing the accord. She said the cooperation between the Indonesian Eximbank and the CBC has a low interest.

"The conditions are lower, and to facilitate new exports the interest rate has been set at the competitive rate of 10 percent," Mari Elka said when accompanying Boediono after meeting Prime Minister Wen Jiabao.