Korean investors ready to invest 92.4 trillion rupiah in capital

JAKARTA – The government secured investment commitments of up to US$6.206 billion, or Rp.92.4 trillion, during President Joko Widodo's state visit to South Korea this week. According to information released by the Ministry of Industry, the investment value comes from the commitment of six companies worth US$446 million and the signing of 15 Memoranda of Understanding (MoU) on cooperation between businesses and government institutions between the two countries, worth 446 million US dollars. 5.76 billion.

Ginseng Country companies that have submitted investment commitments include LS Cable & System, which will establish a $50 million power cable industry in Karawang, West Java; Parkland, which will build a shoe industry in Pati, Central Java, worth $75 million; and World Power Tech, which invested US$85 million to establish a turbine and boiler manufacturing industry in Bekasi, West Java.

The business cooperation MoU that was signed covers the energy, real estate, machinery, technology and cosmetics sectors, including Hyundai Engineering, which is partnering with PT Sulfindo Adiusaha to develop a chemical factory in Merak, Banten, with an investment of US$200. million as well as the development of a diesel machinery plant worth $185 million by Doosan Infracore with PT Boma Bisma Indra (Persero) and PT Equiti Management Technology.

Industry Minister Airlangga Hartarto said this investment commitment was a result of the 2018 Indonesia-Korea Business and Investment Forum, as well as a commemoration of diplomatic relations between the two countries which have been well established for 45 years. “This meeting reflects the enthusiasm of Korean entrepreneurs for business collaboration with Indonesia, both in the form of trade expansion and new investments,” he said.

Indonesian Chamber of Commerce and Industry (Kadin) President Rosan Roeslani said there is still a lot of trade and investment potential between the two countries to explore. “We are very open to investment in Indonesia,” he said. According to Rosan, this visit was the largest group as 104 entrepreneurs participated in the 2018 Indonesia-Korea Business and Investment Forum.

South Korean Chamber of Commerce and Industry (KCCI) President Park Yong-man hopes the forum can pave the way for Korean companies to invest in innovative projects in Indonesia. Furthermore, according to him, there is already a direction for the development of the high-tech industry through the Making Indonesia 4.0 roadmap. “There is a comprehensive plan for the development of high-tech industry, including digital technology as well as biological and hardware automation. Korean companies have the best experience in this field.”

During a press conference with South Korean President Moon Jae-in at the Blue House presidential palace in Seoul on Monday local time, President Joko Widodo said Indonesia and South Korea are able to build stronger relationships. In 2017, real trade between the two countries increased by 20 percent to $17 billion. “We have a trade target of $30 billion for 2022,” Jokowi was quoted as saying by the Cabinet Secretariat website.

During the business forum between the two countries, Jokowi also challenged South Korean companies to bring the latest technologies to Indonesia, as was done by Samsung or LG through smart mobile phone products. “This time it’s 4.0 technology,” he said. According to him, South Korean companies have been operating in Indonesia for a long time and are the third largest investor. “Korean shoe and garment factories employ 900,000 Indonesian workers,” he said. FERY FIRMANSYAH

From cables to cosmetics

The government has received investment commitments from a number of South Korean companies. They intend to build various factories, ranging from cable factories to textiles, shoes and cosmetics.