Indonesia and Laos state companies will conduct business cooperation in various fields ranging from railroad infrastructure, mining, to agriculture. This was revealed from the results of the visit of state-owned enterprises (SOEs) minister Rini Sumarno to Laos on Tuesday (June 25).
In a written statement, Sumarno said the signing of a memorandum of understanding on cooperation between a number of Indonesian SOEs and Phonsavanh Group which had the support of the Laos government, namely Petrotrade and Phaiboun Import and Export Trading was held after a meeting with the Prime Minister of Laos Thongloun Sisoulith in Vientiane, Laos on late Tuesday.
In the field of infrastructure and transportation, the Indonesia Railway Development Consortium (IRDC) consisting of PT Railroad Industry, PT LEN Industri, PT Kereta Api Indonesia, and PT Waskita Karya Tbk (IDX: WSKT) agreed to explore cooperation with Petrotrade in the field of railroad development from Thakek in Laos to Vung Ang Port in Vietnam.
IDRC will build a 195-kilometer train line from Laos to the port area in Vietnam. The Rp9 trillion (US$634 million) project will support Indonesia’s coal exports to Laos and Laos’ potassium imports to Indonesia.
For the mining sector, Indonesian publicly listed miner PT Timah Tbk (TINS) and PT Pupuk Indonesia collaborated with Petrotrade in the mining sector. Where Timah and Petrotrade agreed to explore prospective mining areas until the processing process.
One of the explorations from the mining that will be carried out is to find a new source of raw material for NPK fertilizer, namely potassium chloride. For this, PT Pupuk Indonesia is ready to contribute as a buyer that will absorb the fertilizer raw material. As for Indonesian coal miner, PT Bukit Asam Tbk (PTBA), which agreed to cooperate in coal buying and selling with Petrotrade.
Furthermore, in agriculture, PT Perkebunan Nusantara and PT Pupuk Indonesia and Perum Bulog also formed a partnership with Phaiboun Trading Import and Export.