As many as 10 state-owned enterprises (SOEs) and private companies are to team up with a US-based construction service provider, Sandi Group (TSG) Global Holdings to build infrastructure and provide aircraft maintenance in in the Democratic Republic of Congo (DRC).

Under a memorandum of understanding (MoU) on business cooperation signed in Jakarta last week, the 10 Indonesian companies would be involved in building such facilities as a solar power plant and railroads, as well as selling aircraft and providing aviation maintenance in the Central African country, while the Sandi Group is to finance the projects.

“We are working with five SOEs to expand their businesses inside Indonesia and to take them outside of Indonesia, specifically to the Democratic Republic of Congo,” TSG Global Holdings chief executive officer Rubar Sandi told reporters at a press conference following the signing of the MoU documents.

The partnership is to involve five SOEs, namely construction company PT Wijaya Karya (Wika), industrial electronics company PT Len Industrial, rolling stock manufacturer PT Industri Kereta Api (Inka), airline PT Merpati Nusantara Airlines (MNA) and aircraft manufacturer PT Dirgantara Indonesia (DI). It would also involve five private companies, namely PT Widodo Makmur Unggas, PT Naga Putih Nusantara, PT Nabati Agro Sumatera, PT Langgeng Makmur Perkasa (LMP) Property & Constructions and PT Aero Bahteranusa Palapa.

In the programme, Wika and Len would partner with Sunplus SARL to build a 200MW electric solar panel farm in the DRC where Wika would handle the engineering, procurement and construction of the project. The programme would be the first phase of a plan to build a 1,000MW solar power plant in the country.

Len’s director of operations, Linus Andor Mulana Sijabat, said that his company saw no need to develop new types of solar panels for the project because of the similar geographical conditions between DR Congo and Indonesia. “Our solar panels are already compatible as the irradiance was similar to the Eastern Indonesia region,” he added.

Inka would develop a 1,700km railway and provide 176 locomotives engine and the necessary freight cars to the country for goods transportation. It would also build a 62km light rail transit system for public transportation around the capital city Kinshasa.

In the aviation sector, MNA would provide airplane maintenance, repair and overhaul workshops and training centers for the mechanics and pilots, although MNA would first invite mechanics and 30 pilots from the DRC to be trained in MNA’s training center in Indonesia. The company would also open a cargo shipment route from Indonesia to Africa.

In addition, DI would sell its NC 212i airplanes to the DRC and is planning to develop the DRC to become Africa’s regional hub for the airplane market.

The five private companies would also develop the farming sector in the country, where Widodo Makmur Unggas would develop sustainable poultry farms and Naga Putih Nusantara would develop an animal-feed factory.

Meanwhile, palm oil producer Nabati Agro Sumatera would export palm oil to the country, LMP Property and Constructions would develop satellite cities in several provinces and Aero Bahteranusa Palapa would develop the country’s maritime transportation.

The projects would be funded by TSG global along with its Indonesian-based subsidiary, TSG Utamaa Indonesia, and Singaporean investor Titan Global Capital Pte Ltd. The project was also supported by the United States International Development Finance Corporation (DFC).

Wika president director Tumiyana said the program is the continuation of Indonesia’s commitment to developing infrastructure in African countries as expressed in the Indonesia-Africa Infrastructure Dialogue 2019. “Wijaya Karya had agreed to handle 8.7 trillion rupiah of the development, in this [project] as a part of that deal,” he said.

Some of the aforementioned SOEs had previously expanded their operations to African countries before the project, such as Wika, which had operated in Algeria, Ivory Coast, Niger, Senegal, Tanzania and Zanzibar. DI had refurbished and sold airplanes in other African countries as well.

The government had also stated its interest to expand the SOEs’ operations overseas. “President Joko Widodo has instructed [SOEs Minister] Erick Thohir to encourage our SOEs to expand their global markets,” said ministerial aide Arya Sinulingga in December last year.

The government had also encouraged SOEs to focus more on exporting to nontraditional markets while maintaining exports to their traditional markets such as China, the US and European countries.

THE JAKARTA POST/ASIA NEWS NETWORK