Indonesia expected wheat supplies from the Province of Henan, China, as alternative resource of wheat supply from Indonesia, because so far Indonesia had been importing from the USA, Canada, and Australia. Upon conducting a dialogue in the Indonesia-China/Henan Forum on Monday [24/8], Indonesia’s Minister of Industry Fahmi Idris disclosed that Henan was the most important producer of agricultural commodities in China. The province supplied 10% of food products for all of China and was in the 5th position in terms of GDP output in China.
“In addition to that, in the effort of strengthening food resilience strategy, the Province of Hainan also procures premium seeds of agriculture, which Indonesia may benefit on the basis of cooperation. Besides, supportive to the industry, Henan is also in need of rubber, tapioca, fruits, bauxite ores, picron, and coal. Therefore, Indonesia supports the industrial development in Hainan” Minister Fahmi Idris, who was accompanied by the Governor of Hainan Province Guo Gengmman, and the Indonesian Ambassador to China Sudradjat, remarked.
Minister Fahmi added that presently Indonesia was in the process of developing seeds qualification for hybrid plans, which was why it was necessary to foster collaboration with other countries who were more capable of developing premium seeds. The province of Henan had the potential to serve as center of logistics and activating of human resources and information resources, while China also has competence in manufacturing industry.
“In manufacturing, this provinces produces various commodities like preserved food, and machineries, which are the core industries in the Province of Henan. In the industrial estate, in addition to producing preserved food, Henan also has the Henan Zhengzow Yong Tong Special Steel Corporation, which, in collaboration with PT Mandan Steel had built a steel plant using local raw steel materials in South Kalimantan. This project has won the status of national vital industry by the Indonesian Government” Fahmi further remarked.
In the same opportunity, Governor Guo Gangmao also stated that trading between Indonesia and the Province of Gangmao in 2008 reached the value of USD 216 million, up by 47.7% against 2007. Among the main commodities are rubber and iron one. In July 2007 Henan had signed a Latter of Intent in the formation of collaboration with the Province of West Java, Indonesia.
Henan Zhongyuan Oil Field had signed a contract in oil exploration with Indonesia worth USD 20 million. Today signing of investment agreement took place between two of Henan companies in Indonesia, i.e. Yong Hua Steel joint venture company and China nickel Group worth USD 64 million and investment of Good Friend Tire Co worth USD 15 million. All in all, the value of investment agreed upon in the MOU between Indonesia and the Province of Henan is worth USD 200 million incorporating six companies.
Henan was the foremost province of China in producing electrical transmission equipments, transformation equipments, heavy equipments for mining, agriculture, and transportation equipments. Henan was also the important base of aluminium industry of China capable of producing 3.1 million tons per annum, firmly financed and well integrated.
The province was also the foremost in heavy and medium weight tractor industry, drying machines, secondly relay protective instruments, high-voltage switchboard, explosion proof motors, hydraulic mining equipments and non ferrous metal processors.