Reliance ADA Group, a leading Indian conglomerate, will invest between $5-billion and $10-billion (U.S.) in mining infrastructure in Indonesia, the investment chief of Southeast Asia’s biggest economy said on Wednesday.
Reliance will invest in the coal sector, in power plants and infrastructure in the near future, said Gita Wirjawan, chairman of the Indonesian Investment Coordinating Board.
Indonesia has seen a steady pick up in investor interest over the past 18 months including from India, thanks to a combination of political stability and improving economic growth sustained by strong domestic consumption and demand for commodities ranging from coal to palm oil.
“We talked about Reliance’s willingness to invest... including the infrastructure development,” said Mr. Wirjawan, who was speaking after Anil Ambani, chairman of Reliance ADA Group, met with Indonesia’s President Susilo Bambang Yudhoyono in Jakarta.
“They are very keen and plans to invest between $5 to $10-billion if all the projects materialized,” he told reporters.
Reliance ADA Group has already bought a coal mine on Sumatra Island and plans to build infrastructure, including railway, to transport its coal to the nearest port.
The Group is also looking to invest in a new Jakarta rail line to the airport.
Mr. Wirjawan did not provide details on the timeline of investment while Mr. Ambani declined to comment after the meeting with the president.
Several Indian companies in January signed a number of agreements totalling $15-billion to build infrastructure projects, including airports and steel plant to help the country overcome the lack of infrastructure development.Report Typo/Error