Indonesia Lippo says to build US$14 billion industrial park with China firms

JAKARTA (REUTERS) - Indonesian conglomerate Lippo Group said it will partner two Chinese firms to build a 190 trillion rupiah (S$19.26 billion) industrial park in West Java.

Chinese companies have been stepping up their investment in Southeast Asia's biggest economy, particularly in the infrastructure sector, which has been identified by President Joko Widodo's administration as a priority.

Property developer PT Lippo Cikarang Tbk, one of Lippo Group's listed companies, will work with Shenzhen Yantian Port Group Co Ltd and Country Garden Holdings Co Ltd to develop the Indonesia-Shenzhen Industrial Estate, Lippo said in a statement dated May 24.

While Lippo said the project will have a "total investment value" of 190 trillion rupiah, it did not give details about how much each company will be investing in the project, how it will be funded or by when it will be completed.

The two Chinese companies are "essential conduits" to help attract other large Chinese businesses to build new facilities in Indonesia, Lippo said.

Country Garden has signed a memorandum of understanding for the industrial park, an official who declined to be named due to the company's policy told Reuters in a text message. He declined to comment on the investment size, adding that terms and details will depend on negotiations.

Shenzhen Yantian Port was not immediately available to comment.