Government Assures South Korean Investment Will Continue to Rise Despite LG Energy Solution's Project Exit
Jakarta — The government has assured that investment from South Korea will continue to increase, following LG Energy Solution's withdrawal from one of its projects in Indonesia. In fact, LG is reportedly planning to expand one of its programmes with an investment worth US$1.7 billion, or approximately Rp28.56 trillion (at an exchange rate of Rp16,800 per dollar).
This information was conveyed by Investment and Downstream Industries Minister/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani. Previously, LG Energy Solution had cancelled an investment worth US$7.7 billion, or approximately Rp129 trillion.
According to Rosan's presentation, realised investment from South Korea reached US$683.29 million through the first quarter of 2025. South Korea ranked among the top seven countries with the highest investment in Indonesia.
"Growth from South Korea, I can report, continues to increase — it is very, very positive," said Rosan at the Press Conference on First Quarter 2025 Investment Realisation Achievements at the Ministry of Investment office in Jakarta on Tuesday (29 April 2025).
"There was indeed news recently about LG, that one of their investments in Indonesia would not proceed. However, I have previously stated that not all of their programmes have been discontinued," he added.
Rosan explained that of LG's four battery-related joint ventures, one is already operational and is in fact planning an expansion. In line with these plans, Rosan said he would visit the site the following day.
He added that LG's investment value would be increased to US$1.7 billion, up from the US$1.1 billion already realised. The plan is expected to be implemented promptly.
"So the one that was previously announced as cancelled — after that, not everything was cancelled. There is one part that is proceeding, a joint venture concerning batteries, and its expansion will be carried out soon," he said.
This information was conveyed by Investment and Downstream Industries Minister/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani. Previously, LG Energy Solution had cancelled an investment worth US$7.7 billion, or approximately Rp129 trillion.
According to Rosan's presentation, realised investment from South Korea reached US$683.29 million through the first quarter of 2025. South Korea ranked among the top seven countries with the highest investment in Indonesia.
"Growth from South Korea, I can report, continues to increase — it is very, very positive," said Rosan at the Press Conference on First Quarter 2025 Investment Realisation Achievements at the Ministry of Investment office in Jakarta on Tuesday (29 April 2025).
"There was indeed news recently about LG, that one of their investments in Indonesia would not proceed. However, I have previously stated that not all of their programmes have been discontinued," he added.
Rosan explained that of LG's four battery-related joint ventures, one is already operational and is in fact planning an expansion. In line with these plans, Rosan said he would visit the site the following day.
He added that LG's investment value would be increased to US$1.7 billion, up from the US$1.1 billion already realised. The plan is expected to be implemented promptly.
"So the one that was previously announced as cancelled — after that, not everything was cancelled. There is one part that is proceeding, a joint venture concerning batteries, and its expansion will be carried out soon," he said.