Korean Business Groups Plan US$1.7 Billion Additional Investment in Indonesia
President Prabowo Subianto has revealed that total realised investment by 19 Korean corporate groups has reached nearly US$15.4 billion. Following a meeting on Monday (28/4), Korean business leaders plan to add a further US$1.7 billion (equivalent to Rp 30 trillion) in investment.
However, economist Nailul Huda of the Center of Economics and Law Studies (Celios) has cautioned that such investment commitments should not remain mere plans without realisation. He noted that previously, several major Korean companies, such as LG, had cancelled their investment plans in Indonesia.
According to Nailul, an investment of Rp 30 trillion is a substantial sum that could deliver significant benefits, particularly in job creation. "The government must certainly improve the investment climate, starting with tackling thuggish organisations that are disrupting nationally strategic industries," he said in an interview with Kontan on Monday (28/4).
Nailul observed that despite investment commitments appearing imminent, they frequently fail to materialise due to an unsupportive investment climate on the ground. One of the primary obstacles is unexpectedly high investment costs, including bribes and protection money.
Furthermore, Nailul urged the government to provide greater support for domestic industry through protective programmes, such as the local content requirement (TKDN) programme and other initiatives that could strengthen the competitiveness of the national industrial sector.
However, economist Nailul Huda of the Center of Economics and Law Studies (Celios) has cautioned that such investment commitments should not remain mere plans without realisation. He noted that previously, several major Korean companies, such as LG, had cancelled their investment plans in Indonesia.
According to Nailul, an investment of Rp 30 trillion is a substantial sum that could deliver significant benefits, particularly in job creation. "The government must certainly improve the investment climate, starting with tackling thuggish organisations that are disrupting nationally strategic industries," he said in an interview with Kontan on Monday (28/4).
Nailul observed that despite investment commitments appearing imminent, they frequently fail to materialise due to an unsupportive investment climate on the ground. One of the primary obstacles is unexpectedly high investment costs, including bribes and protection money.
Furthermore, Nailul urged the government to provide greater support for domestic industry through protective programmes, such as the local content requirement (TKDN) programme and other initiatives that could strengthen the competitiveness of the national industrial sector.