GE announces investment in Indonesia’s oil and gas sector
WASHINGTON -- GE has announced that it 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 the United States of America, Barack Obama. The investment will be made in tandem with GE’s participation in the country’s infrastructure build-out.
“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 Vice Chairman John Rice said. "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.”
The company says that 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.
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.
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.
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.
