JAKARTA - Indonesia's Investment Coordinating Board, or BKPM, on Wednesday signed an investment memorandum of understanding with China's Anhui province, in an effort to promote the investment cooperation between the two sides.

Under the MOU, the East China province with 60 million populations agreed to establish an economic and trade cooperation zone in Indonesia to accommodate factories and companies from Anhui province.

However, neither BKPM nor Anhui mentioned the total investment value.

Speaking at the signing ceremony, BKPM deputy chairman Achmad Kurdiani said the signing of the MOU marks the establishment of investment promotion partnership between Anhui province and Indonesia.

"It will be an effective endeavor in increasing investment activities of Chinese investors from Anhui province into Indonesia and vice versa," Achmad said.

Cao Yong, director-general of the Department of Commerce of Anhui Province of Commerce of Anhui province, said Indonesia is a very dynamic country with huge natural resource and the Anhui government encourages its companies and entrepreneurs to invest in Indonesia.

"The establishment of the economic and trade cooperation zone in Indonesia will surely promote more companies from Anhui to invest here and get developed with Indonesia," Cao said.

According to Cao, the economic and trade cooperation between Anhui province and Indonesia has been experiencing an rapid increase in recent years, with the total import and export trade volume reaching $1.07 billion in 2012, up 106 percent from a year earlier.

Zhang Baoshun, secretary of Anhui Provincial Committee of the Communist Party of China, attended the signing ceremony, who led an economic and trade delegation to investigate Indonesia's investment environment.

Anhui Conch Cement Co, China's largest cement manufacturer has also reached an investment intention with South Sulawesi's Maros County government at the signing ceremony.