Lotte Chemical and Posco's US$6 Billion Investment in Indonesia Proceeds

The Indonesian government is taking follow-up steps on a major investment plan involving two South Korean industrial giants, Lotte Chemical and Posco. This strategic partnership in the downstream sector is estimated to total US$6 billion.

Citing Investortrust, the Minister of Investment and Downstreaming/Head of BKPM, who also serves as CEO of Danantara, Rosan Roeslani, revealed that the existence of the Danantara Investment Management Agency has been a crucial factor. This institution has successfully strengthened the confidence of major investors from the Land of the Ginseng.

“Interestingly, they stated that the presence of Danantara provides them with greater confidence to invest together. We are processing the follow-up investment with Lotte Chemical and Posco, which could reach US$6 billion,” said Rosan Roeslani.

The success of the initial investment implementation in the country has sparked these companies to expand. In addition to Posco, the manufacturing company KCC Glass has reportedly prepared to move to the second development phase.

According to Rosan Roeslani, the phenomenon of reinvestment or the desire of foreign companies to expand their business scale is a positive indicator. This proves that Indonesia’s business climate can provide promising returns and maintained stability.

“This indicates that if they invest and see good results along with stable conditions, they will enlarge their investments. Like KCC Glass and Posco, they will enter the second phase,” stated Rosan Roeslani.

The government reaffirms its commitment to carrying out the President’s directives so that every foreign capital entering provides concrete impacts for the country. The main focus remains on strengthening the downstream sector and creating jobs for the local community.

“We hope the impact of job creation will be quite significant. We believe that in the future, incoming investments will continue to grow and provide benefits for us all,” said Rosan Roeslani.

This follow-up step is expected to accelerate the strengthening of the national industrial structure through the integration of technology and capital from global partners. The government continues to strive to maintain economic growth momentum through licensing ease and legal certainty for investors.