Chinese Premier Wen Jiabao brought great news and economic rewards for Indonesia on his two-day official visit, along with a delegation representing 150 Chinese companies. The results were offers of multibillion dollar loans, US$10 billion worth of business contracts, $8 billion worth of financing contracts for companies willing to invest in Indonesia’s major infrastructure projects, and a $1 billion ‘preferential buyer’s credit’ for Indonesia, reportedly the largest China has ever awarded a foreign country.

The $8 billion in financing contracts will come mainly from the China Investment Corp ($4 billion), the Export-Import Bank of China and the Commercial Bank of China. Bilateral trade between the two countries reached $42.7 billion last year, a 50.6% increase on the previous year, with Wen saying it could feasibly reach $80 billion annually by 2015.

Wen’s visit was the first official visit to Indonesia by a Chinese Premier in a decade, and hinted at a much closer economic and strategic relationship between the two countries. He announced the plans at a joint media conference with President Susilo Bambang Yudhoyono. They also announced new regular top-level meetings between leaders and dialogs at vice-prime-ministerial level, plus new programs to cooperate on maritime security, resources exploitation and disaster response.

China took particular interest in Indonesia’s large-scale ‘six economic corridors’ development strategy and the many opportunities for investment and progress it produced. The Indonesian Ambassador to China,¬†Imron Cotan, seemed particularly pleased at the thought of enhanced relations, saying that China was willing to share its technology and put no preconditions on investment, and understood that Indonesia’s prosperity and regional stability would be beneficial to China’s own progress.

source & article: China Daily