Korean Firms Commit $1.7 Billion in New Investments Following Meeting with Prabowo
Jakarta. Business leaders from the Federation of Korean Industries (FKI) have pledged a new investment of $1.7 billion in Indonesia following a meeting with President Prabowo Subianto at the State Palace in Jakarta on Monday.
The total investment of the 19 South Korean companies represented by FKI has so far reached $15.4 billion in Indonesia, Chief Economic Minister Airlangga Hartarto said after the meeting.
"An additional $1.7 billion will be invested by the 19 companies that met with the President today," Airlangga said.
Among the Korean investors were big names such as Lotte Chemicals, KB Financial, Hyundai Motor, and POSCO Holdings.
"Lotte Chemicals, for example, plans to inaugurate a petrochemical factory in September or October this year. They have also offered a participating interest to Indonesia, which the President has approved in principle. Danantara will be tasked with assessing and following up on this investment opportunity," Airlangga said, referring to Indonesia’s sovereign wealth fund, Danantara.
Danantara CEO Rosan Roeslani and Vice President Gibran Rakabuming Raka were also present at the meeting.
Airlangga said KB Financial reported that its Indonesian operations have turned profitable after four years, while Hyundai Motor conveyed that its local operations are running smoothly.
Meanwhile, POSCO is preparing for the second phase of its integrated steel project in collaboration with Indonesia’s state-owned Krakatau Steel, aiming for a production capacity of 10 million tons.
In the manufacturing sector, EcoPro has invested $500 million in a nickel smelter in Morowali, while KCC Glass plans to expand its operations in Indonesia.
Additionally, LX International will invest $500 million in coal and nickel mining as well as plantations in the country.
President Prabowo listened to the presentations from the Korean companies one by one and demonstrated his commitment to strengthening economic cooperation between Indonesia and South Korea, Airlangga said.
The meeting took place shortly after the Indonesian government removed South Korea’s LG Energy Solution from a $9.8 billion electric vehicle battery project consortium -- comprising Indonesia Battery Corporation (IBC) and state miner Aneka Tambang (Antam) -- due to prolonged delays.
"We didn’t discuss LG today; the focus was on Lotte, Hyundai, and other Korean companies," Airlangga said.
Tags: Keywords:
as a preferred
Related Articles
Prabowo Calls Meeting on Forest Fires as Haze Reaches Jakarta, Singapore
Prabowo summons senior officials to discuss forest fires as smoke reaches Jakarta and Malaysia pushes for regional action.
Books on Prabowo's Ideas Distributed Free at Jakarta Car-Free Day
Prabowo, who took office on Oct. 20, 2024, will mark the second anniversary of his presidency on Tuesday.
Two Years Into Prabowo Presidency, Infrastructure Takes Back Seat
Prabowo’s social spending push raises concerns over infrastructure delays and uneven growth beyond Java.
Prabowo, Egypt’s Sisi Talk Trade Pact for $5 Billion Commerce
Egypt's Sisi tells Prabowo that he wants to see annual trade to reach $5 billion by 2030 as Jakarta seeks tariff deals.
Egypt's Sisi Arrives in Indonesia for Talks With Prabowo
Egyptian President Abdel Fattah el-Sisi arrives in Indonesia for talks with Prabowo Subianto to strengthen strategic ties.
Prabowo to Launch Indonesia’s First Electric Vehicle Battery Export
Indonesia is set to export its first electric vehicle batteries as Prabowo launches a $10.2 billion industrial program.
Bahlil Signals More Ministries May Join New Downstream Coordination
Bahlil signals one or two more ministries could join the new downstream coordination, with the Industry Ministry among those considered.
Prabowo to Inaugurate Six New Military Commands on TNI Anniversary
Prabowo will inaugurate six new military commands and dozens of other units as Indonesia’s TNI marks its 81st anniversary.
Big Spending, Limited Revenue: Economists Question Prabowo’s Economic Strategy
Prabowo’s flagship programs face scrutiny as rising spending, weak job creation and deindustrialization threaten Indonesia’s growth.
Breaking: Prabowo Reportedly Set to Reshuffle Energy, Foreign Affairs Ministerial Posts
Prabowo reshuffles energy and foreign affairs portfolios as Bahlil and Sugiono are set for new roles in his seventh cabinet reshuffle.The Latest
Christiane Amanpour to Leave CNN After 43 Years
Her announcement came weeks after media corporation Paramount Skydance formally took over Warner Bros. Discovery, the parent company of CNN.
Indonesia Records Rp 1.54 Quadrillion in Investment Through September
Cumulative investment since President Prabowo Subianto took office on Oct. 20, 2024, had reached approximately Rp 3.92 quadrillion.
UN Boss Wants to Fix Security Council as Indonesia Seeks Seat
Outgoing UN chief Guterres says the current permanent member setup at the Security Council fails to reflect today's realities.
Saudi Flagship Investment Conference Pushed to 2027 after Houthi Attacks
The annual Future Investment Initiative (FII), often dubbed "Davos in the Desert", was originally scheduled to take place from October 26-29
Government Sets Aside Rp 1.3 Quadrillion for Final-Quarter Spending
Government spending has reached Rp 2.66 quadrillion, equivalent to 69.2% of the full-year budget target of Rp 3.84 quadrillion.Most Popular
