General Electric Co. (GE:US) today said it plans to spend more than $300 million in Indonesia over five years in areas including rural health care and deep-sea drilling as the company steps up investments in emerging markets.
GE will also create a learning and technology center in partnership with PT Garuda Indonesia, the country’s biggest airline, state utility PT Perusahaan Listrik Negara and PT Pertamina, the state-owned oil and gas company, GE said in a statement in Jakarta.
The world’s biggest maker of jet engines is boosting investments in developing nations as Chief Executive Officer Jeffrey Immelt focuses on manufacturing while shrinking the finance unit. Such expansion fueled the aviation and health-care divisions, which drove industrial performance and helped build a record $210 billion order backlog.
“We have seen extraordinary growth in our business here in Indonesia over the past two years in tandem with the country’s accelerated growth path to build more infrastructure,” Immelt said in the statement.
The investments planned in Indonesia will also be used for developing new products in areas such as rural health care, biomass power plants and for modernizing locomotives through co- operation with PT Kereta API Indonesia, Handry Satriago, Chief Executive Officer of GE Indonesia, said at an event to sign an initial pact for the learning center.
GE has been in Indonesia since 1940 and has invested more than $1 billion in the country, according to the statement. Indonesian President Susilo Bambang Yudhoyono, who has led the nation since 2004, has pledged to build more roads, ports and airports to achieve average economic expansion of 6.6 percent by the end of 2014.
GE’s industrial revenues in emerging markets climbed 11 percent last year, the company said in January. In China, sales increased 19 percent to about $6 billion, lead by the health- care unit’s 22 percent advance.
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