Chinese state owned enterprises appear keen to gain access to the growing Indonesian economy in view of the Jokowi government’s push for strong foreign investment in Infrastructure, he said.

“There are a number of large Chinese SOE steel companies in the early planning stage for the establishment of hot metal production in Indonesia which would provide them greater access to the rapidly growing domestic steel market.

“Currently Indonesia consumes nearly 25 million tonnes per annum of steel while producing less than 6Mtpa.”

The consumer middle class of Indonesia is projected to grow by a further 90 million people to the year 2030. In 2012 the steel consumption of Indonesia per capita was 49kg which is still substantially lower when compared to 477kg in China at the same time.

“So far early seed capital investors have been briefed as well as large strategic investors such as

mainland Chinese steel industry operators,” Lynch said.

“Meetings have continued with several potential strategic investors who could cornerstone either a Shanghai listing or even a listing in Indonesia.

“At this point in time no specific agreement has been reached. It is hoped that it may be possible to develop this opportunity into a firm proposal.”

The board is open to other proposals and will actively evaluate and assess them as they arise including a combination of the above funding strategies to provide the best result for shareholders, Lynch said.