Gov't Expects More Indonesia-Iran Cooperation in Energy Sector
Jakarta. Indonesia and Iran have agreed to focus on cooperation in the energy sector, chairman of the Investment Coordinating Board, or BKPM, said on Friday (16/12).
Iran has reiterated its commitment to build an oil refinery in East Java and develop a 5,000-megawatt mobile power generator. In January-September, its has already invested $14.3 million in Indonesia, primarily in transportation and telecommunications.
State-owned energy company Pertamina will return the favor by managing in Iran an oil field with a reserve of approximately 5 billion barrels. The company needs to submit a drilling proposal by February.
"Indonesia and Iran are entering the new era of bilateral relations, with the full support of both governments," BKPM chairman Thomas Trikasih Lembong said in a statement.
"Energy will become the foundation of our partnership. Trade, services and tourism will see progress as well," he added.
On Wednesday, President Joko "Jokowi" Widodo paid an official visit to Tehran, after President Hassan Rouhani visited Indonesia in April.
The president said he expects Indonesia-Iran trade to be worth $2 billion in a few years. According to data from the Ministry of Trade, in January-September the total trade between the two countries stood at $178 million only, 16 less than in the same period last year.
Tags: Keywords: