Gov’t Follows Up Issues, Commitments during Presidential Visit to Japan, S. Korea, China

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 24 Agustus 2022
Category: News
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Coordinating Minister for Economic Affairs Airlangga Hartarto and Minister of Investment Bahlil Lahadalia deliver press statement after meeting President Joko Widodo, Wednesday (08/24), at the Presidential Office, Jakarta. (Photo: Agung/PR)

President Joko “Jokowi” Widodo Wednesday (08/24) at the Merdeka Palace, Jakarta, chaired a meeting to follow-up several issues regarding his visit to Japan, the Republic of Korea (ROK) and the People’s Republic of China (PRC) last July.

Minister of Investment Bahlil Lahadalia said that Indonesia has received an investment commitment of US$6.72 billion from the ROK.

“One of the ROK’s investment commitments is worth US$6.72 billion or equivalent to more than Rp100 trillion. All of the existing ones are currently on going, and some of the groundbreakings will start at the end of this year and in January,” said Bahlil.

He added that the investment commitment includes an additional investment commitment of US$3.5 billion from the ROK’s steel company Posco, which will cooperate with state-owned steel company PT Krakatau Steel to produce steel for automotive industry, including electric vehicles.

“All permits and incentives are already clear,” said Bahlil.

In addition, there is also a commitment to build a shoe factory in Sragen, Central Java province, which will absorb a workforce of approximately 30,000 people. The ROK’s leading company LG will also build an electric battery factory and has showed their interest to invest in the New Capital of Nusantara (IKN).

“LG’s electric battery factory project is still on schedule and some of the realization is already underway,” he said.

In addition, Bahlil expressed China’s commitment to increase CPO imports from Indonesia. China will also invest in the construction of a Green Industrial Park as well as new and renewable energy in North Kalimantan province.

“The President has instructed his Cabinet to speed up the development of the Green Industrial Park in North Kalimantan province. All permits have been completed and now the infrastructure development has started. Other things related to China are the development for CATL and some projects on new renewable energy,” he said.

Meanwhile, regarding the follow-up to the President’s visit to Japan, Coordinating Minister for Economic Affairs Airlangga Hartarto said that the evaluation of the Indonesia Japan Economic Partnership Agreement (IJEPA) is expected to be completed soon before the G20 Summit in Bali.

“The Japanese Government has received the New ISPO (Indonesia Sustainable Palm Oil) certification and has also expanded the proposed market access for canned tuna products, coffee, marine products, and tropical fruits such as mango, pineapple, and banana. It is expected that these commodities will be included in the IJEPA general review so that the tariff post can be improved,” said Airlangga.

Airlangga also explained a number of investments from Japan, including additional investment from Mitsubishi of Rp10 trillion, Toyota Group of Rp27.1 trillion, as well as investment realization from food company Glico and the retail sector.

In terms of infrastructure sector, Japan is committed to continuing cooperation in strategic projects such as the Patimban Seaport.

“The construction of Patimban Seaport will continue to Phase II (2024-2025) with investment value of around Rp7.58 trillion and to prepare Phase III of Government Cooperation with Business Entities facilities worth Rp3.86 trillion,” said Airlangga.

Bahlil further explained that one of Japan’s investment commitments was obtained from Sojitz Corp, which will build a methanol industry in eastern Indonesia.

“A methanol factory will be built in West Papua province. It has been agreed to bring the methanol to Bintuni bay and the fertilizer factory in Fakfak. Of the total investment from Japan of US$5.2 billion, everything is going well,” Bahlil said. (FID/TGH/UN) (EST/MMB)

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