GE plans to expand investment in Indonesia

U.S.-based General Electric (GE) plans to increase investment in manufacturing locomotive and power plant in Indonesia, the company top official said Friday.

The Chief of Executive of the GE Jeffrey R. Immelt said this after meeting with Indonesian President Susilo Bambang Yudhoyono and ministers at the Presidential Palace here.

Jeffrey said that he is optimistic with the investment climate in Indonesia.

"We are optimistic of the country and look forward the future," he told reporters.

"We are looking for the areas of energy and the real sector," he added. GE's current investment in the country stood at 0.5 billion U.S. dollars.

Indonesian Transport Minister Hatta Rajasa said that GE will provide technology to produce over 200 units of locomotives within ten years in Indonesia.

GE will cooperate with local company Inka corp., and Barata corp., in producing the facilities and to beef up the use of local parts up to more than 30 percent, in a bid to meet the market demands for domestic and ASEAN (the Association of Southeast Asian Nations), he said.

GE, in collaboration with the Inka corp., has targeted to assemble at least 50 units locomotives from 2005 to 2008 in Indonesia, said Hatta.

Indonesian Coordinating Minister for Economy Boediono said that the GE also planned to invest in power plant.

The General Electric was pull out from Indonesia in 2001 due to poor investment climate.

"But, they (GE) are now very confident with the improved Indonesia's investment climate," said Minister Hatta.

GE, with the total assets of about 4 billion U.S. dollars, has businesses in infrastructure (including energy), healthcare, entertainment, and finance.

Source: Xinhua