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.