Indonesia, Korean Industries Federation Agree to Deepen Cooperation

President Prabowo receives a courtesy call from Chairman of Lotte Group and Federation of Korean Industries (FKI) delegates at the Merdeka Palace, Jakarta, Monday (04/28). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto Monday (04/28) received a courtesy call from Chairman of Lotte Group, South Korean multinational conglomerate corporation, Shin Dong-bin, as well as Federation of Korean Industries (FKI) delegates at the Merdeka Palace, Jakarta. The meeting resulted in a commitment for additional investment amounting to US$1.7 billion from several South Korean corporations in Indonesia’s various strategic sector.

Coordinating Minister for Economic Affairs Airlangga Hartarto said that the meeting was attended by 19 South Korean corporations, 18 of which have been actively investing in Indonesia with a total investment value of US$15.4 billion.

The meeting also highlighted the proposal from Lotte Chemical Indonesia for the Indonesian Government to participate in its petrochemical plant construction project which was approved by President Prabowo.

“Danantara is assigned to conduct a study and follow-up to the investment proposal,” Airlangga said.

Besides Lotte Chemical, other South Korean companies also reported their investment progresses in Indonesia in that meeting. KB Financial reported that PT Bank Bukopin Tbk has now recorded a profit after four years of management. Hyundai Motor also stated that their operations are running well, while POSCO confirmed that its partnership with Krakatau Steel has entered the second phase, targeting production of up to 10 million tons of steel.

Furthermore, EcoPro, a battery manufacturing company, also recorded an investment of US$500 million in Morowali for the production of cathode precursor and nickel smelter. KCC Glass, which has already invested in the Batang Industrial Estate, also expressed the plan to expand, hoping for support through competitive natural gas pricing.

Other company, LX International, also affirmed its commitment to further invest in the coal, nickel, and plantation sectors, with total commitments reaching up to half a billion US Dollar. At the same time, the establishment of an ammunition manufacturing company is expected to reinforce defense sector. SK Group is also constructing a Convalescent Plasma plant in Cikarang to help meet domestic medical needs.

In the meantime, South Korean delegates also expressed their appreciation to the Indonesian Government for paying attention to their aspiration and business plans.

For the record, the meeting also reflects the strong commitment between Indonesia and South Korea to deepen economic and investment cooperation. The additional investments are expected to boost national economic growth, create new employments, and expedite industrial transformation across various strategic sectors. (BPMI of Presidential Secretariat) (RAS/MUR)