GE to Invest in Indonesia’s Economic Growth
GE will invest up to $1 billion in the power, oil and gas, and healthcare sectors to support Indonesia’s accelerated economic growth.
The announcement was made on the sidelines of a meeting between the President of the Republic of Indonesia, Joko Widodo, and the President of United States of America, Barack Obama. The investment will be made in tandem with GE’s participation in the country’s infrastructure build-out.
Elaborating on the $1 billion program, GE’s Vice Chairman John Rice said, “Indonesia has been an important and strategic country for us for over 75 years and the current government’s vision and more recent plans to accelerate spending on infrastructure have given us the confidence to make this commitment. GE’s spending over the next 5 years will target critical areas important to the economy and cover power generation, oil and gas, and healthcare. Through this investment, we hope to expand our local business operations significantly, in a way that we believe will lead to a multiplier effect on the economy.”
Indonesia has set an ambitious goal to increase power generation capacity by 35 GW by 2019. To facilitate achieving this goal, GE will bring its latest technology and will partner with local companies to expand their manufacturing and assembly capabilities, as well as enhance repair and service capabilities in country. In addition, GE will help build Indonesia’s human capital through technical and leadership training programs, the company said.
In the oil and gas space, GE’s investments will include expanding the current subsea equipment manufacturing facility to include other GE product lines, and partnering with local companies to expand manufacturing and assembly locally.
In the healthcare sector, GE will align with Indonesia’s objective of providing universal healthcare by supporting the expansion of the country’s primary healthcare ecosystem, including the development of up to 100 primary care clinics through technology and training innovations.
These commitments will result in the creation of over 6,000 jobs, technology transfer, training of over 1,000 people a year, and the expansion of local supply chains as GE’s business grows.
GE’s investment in its three facilities have directly provided jobs for 800 Indonesians, supported the local supply chain and enhanced export capabilities for the country. More than 90% of the equipment manufactured in its oil and gas facility such as subsea wellheads, surface wellheads, vertical christmas trees, tubular products and connectors used in oil and gas exploration and production is exported for use in global projects.