Two Chinese companies signed an agreement on Thursday to jointly invest in an Indonesian cement factory as part of investment cooperation measures agreed by the two countries in 2013.

State Development and Investment Corp (SDIC) and Anhui Conch Cement Company (Conch) will fund the project of building production lines and relevant facilities of the factory located in West Papua Province.

After the construction is completed, the factory will have a capacity of 3Mta, serving for Indonesia's economic corridor and neighbouring countries including Papua New Guinea.

SDIC and Conch will have a stake of 51 and 49 per cent in the factory, respectively,  according to the agreement.