Indonesia Secures Rp 574 Trillion Investment Commitments from South Korea and Japan
The working visit by Coordinating Minister for the Economy Airlangga Hartarto to South Korea has successfully brought home substantial investment commitments. A total of 10 memorandums of understanding (MoUs) were signed, with an overall value of 10.2 billion US dollars, equivalent to approximately Rp 173 trillion. This information was reported by Money.
The cooperation spans various strategic sectors, from energy to manufacturing technology. According to Airlangga, the agreements include the development of new renewable energy, such as solar power, carbon capture and storage (CCS), and various other environmentally friendly energy projects.
In addition to the energy sector, investment focus also targets strategic industries such as steel and batteries. Clean energy-based transportation and the development of artificial intelligence (AI) technology are included in the investments. The property and infrastructure sectors, including the Bumi Serpong Damai (BSD) area, also received funding inflows.
Strengthening collaboration among business actors was further established through partnerships between the Indonesian Chamber of Commerce and Industry (Kadin) and the Korean Chamber of Commerce (KCCI). Airlangga added that industrial cooperation also covers strengthening the battery supply chain and high-tech manufacturing investments.
These investments include the continuation of commitments from POSCO and the exploration of investment opportunities from Lotte Group, which opens potential involvement of Indonesia’s sovereign wealth fund, Danantara.
In addition to South Korea, the government also recorded significant results from the President’s visit to Japan. From that visit, nine MoUs were signed, with an investment value of 23.6 billion US dollars, or approximately Rp 401 trillion.
In total, the investment commitments from both countries amount to around Rp 574 trillion. This figure is considered very important amid global uncertainties due to geopolitical dynamics. “This is a very large figure. In an uncertain geopolitical situation, Indonesia remains attractive to Japanese and Korean investors,” said Airlangga.
According to Airlangga, Japan currently holds the third position as Indonesia’s investment and trade partner, while South Korea is in seventh place. Looking ahead, it is hoped that both countries will not only act as investors but also as co-investors with Indonesia, especially with the existence of the national sovereign wealth fund.
In a bilateral meeting with South Korea’s Minister of Trade, Industry, and Energy, Airlangga also discussed efforts to strengthen investment cooperation. One of the main priorities is to resolve various investment bottlenecks faced by Korean investors in Indonesia.
The government has stated that it has prepared acceleration measures to ensure these obstacles can be quickly addressed. “We are preparing a debottlenecking mechanism so that business issues can be resolved quickly,” explained Airlangga.
Airlangga emphasised that bilateral relations between Indonesia and South Korea show a positive trend, both at the government level and in business collaborations. This is reinforced by constructive and productive meetings between the presidents of both countries.