Indonesia has signed nine major investment projects worth $18 billion with South Korean investors, during President Joko Widodo visit to Seoul, according to a top official.
An Indonesian delegation, led by the President, arrived on Sunday for a three-day visit to South Korea as part of the government’s efforts to attract more foreign investment to boost the country’s economic growth. The entourage is to continue the trip to Russia.
Head of Coordinating Investment Board (BKPM) Franky Sibarani said, in a press statement, the business agreements cover sectors such as maritime, creative industries, anti-corruption, restoration of peatland forests, defence technology, special economic zones, research and development in energy.
Indonesia signed up a $4-billion deal with Lotte Chemical for an integrated naphtha cracker project while it signed up $10-billion commitments with Korea Gas Corp. (KOGAS) to develop gas infrastructure and LNG storage.
Other Korean firms that have committed investments in Indonesia include CJ Group, which is looking at investments of $2.1 billion in the creative industry. Daewoong Infion is looking at $100-milion investment plans in the bio-pharma space.
Korea Midland Power Co., Ltd, Samtan Co. Ltd, PT Indika Energy Tbk (INDY) and Japan’s Marubeni Corp. consortium are looking at investing $1.27 billion in the third phase expansion in Cirebon power plant with capacity 660 MW.
Other projects include the consortium of KOMIPO, Posco Engineering and PT Putra Sulindo East for the 50 MW hydropower plant project in Southeast Sulewesi with an investment of $230 million. KOMIPO and Energi Mega Bali are investing $140 million for a waste to energy project in Bali.
KORBI Co., Ltd and PT Coffindo are investing $100 million in a solar energy project in North Sumatra while Parkland Co., Ltd will build a shoe factory in Jepara with additional investment value of $83.5 million.
According to BKPM data, in the first quarter 2016, South Korea ranked sixth among nations bringing FDI into Indonesia contributing $188 million across 435 projects.
Investment from South Korea last year reached $1.2 billion, growing by 7.6% from the same period the previous year. Since 2010-2015 the value of investment coming from South Korea reached $8 billion.