JAKARTA – Several Malaysian government-linked companies (GLC) and private entities inked multiple memoranda of understanding and collaboration, and submitted letters of intent to their Indonesian counterparts during Prime Minister Datuk Seri Anwar Ibrahim’s first official overseas visit to Indonesia.
So far, the MoUs total up to a potential RM1.66 billion.
The giants partnering up with their Indonesian counterparts include FGV Holdings Bhd, who signed an agreement to collaborate with PT Perkebunan Nusantara Indonesia to increase the value of each organisation, including their subsidiaries.
They agreed to the principles of good corporate governance, and to create a positive impact on the environment and their social targets while adhering to the provisions of the applicable law and regulations.
Meanwhile, ASIC Offshore and Marine Sdn Bhd inked an MoU with PT Dok dan Perkapalan Kodja Bahari to capture market shares for engineering, shipbuilding, ship repair, financial investment for production instruments and production facilities, onshore and offshore engineering, fabrication, and for business shipbuilding and ship repair from national shipping companies within the Indonesian region.
The joint venture partnerships are estimated to value at more than RM500 million in two years.
Similarly, Airod Sdn Bhd and PT Dirgantara Indonesia’s commitment of cooperation related to the refurbishment, replacement of centre wing boxes, technical training and technical assistance for the Lockheed Martin C-140 modernisation project has a potential value of US$150 million (RM660.5 million).
This deal will be formalised in a separate agreement between the two parties.
Penjana Kapital Sdn Bhd’s agreement with Indies Capital Ventures and AC Ventures to establish a working framework and explore co-investment opportunities in Malaysia-Indonesia growth companies through existing and soon-to-be-launched funds has a potential co-investment value of RM500 million.
The export-import banks of both nations, Exim Bank Malaysia and Exim Bank Indonesia, have also agreed to strengthen their cooperation and achieve further mutual understanding and close coordination through exchange of information, experience, and business connections.
At the same time, the MoU between Citaglobal Bhd and Indonesia Battery Corporation will assess the potential for cooperation in the development of battery manufacturing plants and battery energy storage systems (BESS), including but not limited to:
- developing, designing, and building integrated turnkey manufacturing facilities for battery cells, modules, and packs;
- developing BESS integrated solutions; and
- transferring related technologies and know-how for the development of battery plants and BESS.
In total, nine MoUs were signed by Malaysian and Indonesian entities witnessed by Anwar, International Trade and Industries Minister Senator Datuk Seri Tengku Zafrul Tengku Abdul Aziz, Malaysian Foreign Minister Datuk Seri Zambry Abdul Kadir, and Indonesian Foreign Affairs Minister Retno Marsudi.
The other Malaysian companies that signed MoUs were AWC Bhd, Airod Sdn Bhd, and SIRIM Bhd.
When it came to LOIs for the development of Nusantara, the country was represented by Carsome, Berjaya Corporation Bhd, Boustead Properties Bhd, Pharmaniaga Bhd, Protasco Bhd, and Reneuco Bhd, among others.
Tenaga Nasional Bhd and Perusahaan Listrik Negara had also signed an LOI that is unrelated to the Nusantara development project.
In total, 12 LoIs were signed by the 10 Malaysian companies, wherein Protasco had signed two LoIs. – The Vibes, January 8, 2023
