The Chief of Indonesias Capital Investment Coordinating Board (BKPM), Thomas Lembong, said here on Thursday that the energy sector would become the backbone of cooperation between Indonesia and Iran.

In a press statement, he informed that the two countries have signed three memorandums of understanding through a number of companies at the “Indonesia-Iran Trade and Investment Discussion” event at Hotel Espinas Palace in Iran.

The three companies involved in signing these MoUs are the state-owned power company PT PLN, which signed with Irans Mapna Group for generating plant development, Mayora Indah with Nakhle Tuba Ariayi for product distribution and state-owned oil and gas company PT Pertamina with National Iranian Oil Company for LPG purchase.

The MoUs were signed by Irans ICT Minister Mahmoed Vaesi and Indonesias Coordinating Minister for Economic Affairs Darmin Nasution, Energy Minister Ignasius Jonan and Indonesian Ambassador to Iran Octavino Alimudin.

“Energy is the backbone of the cooperation between Indonesia and Iran. Trade, service and tourism sectors have also shown growth,” Minister Lembong noted.

He underscored that the visit to Iran opened a big potential opportunity for Iranian investors to invest in Indonesia in view of the fact that Iran is ranked 29th in the world when it comes to economic power.

“The visit to Iran was truly insightful and inspiring. Iran is a developing country with its economy ranked at 29th. Besides, it is now open and has a huge potential. Indonesia and Iran have entered a new era in their bilateral relations, The two countries governments fully support the cooperation initiatives. President Joko Widodo has expressed the hope that concrete results would be achieved,” he pointed out.

According to the BKPM, between January and September 2016, Irans investment was ranked 31st with total realization reaching US$14.3 million.

Transportation, warehousing and telecommunication attracted Iran investors the most in 2016.

During his recent visit to Iran, Indonesian President Joko Widodo agreed with his Iranian counterpart, Hassan Rouhani, to increase business relations between the two countries.

One sphere that would be the main focus for cooperation between the two countries is energy, including oil and gas.

The Iranian government is committed to invest in Indonesia. President Joko Widodo has revealed plans for Iranian investment in developing oil refinery and mobile power generation.

“Iran plans to build a refinery in East Java and a mobile power plant with a capacity of around 5,000 MW,” Minister Lembong disclosed

source: antarnews.com