Prabowo's Visit to Japan and South Korea Boosts Investor Confidence
The working visit of President-elect Prabowo Subianto to Japan and South Korea has produced positive results, particularly in boosting global investors’ confidence in Indonesia’s economic potential. Minister of Investment and Downstreaming/Head of BKPM, Rosan Roeslani, who also serves as CEO of Danantara, stated that the series of agendas was highly productive, directly connecting the government with major business players from both countries.
Rosan revealed that in Japan, around 300 major entrepreneurs participated in various forums, including a limited meeting with 12 key investors. Meanwhile, in South Korea, President Prabowo interacted with 11 major entrepreneurs. This information was conveyed by Rosan and reported by Kompas.com, underscoring the positive response from the business world to the President’s openness.
Amid ongoing geopolitical and global economic uncertainties, investment interest from Japan and South Korea continues to show a solid trend. Both countries consistently hold strategic positions as major investors in Indonesia.
Japan is currently ranked among the top five largest investors in Indonesia. South Korea follows in sixth to seventh place. Investment growth from South Korea averages 14 per cent annually, while Japan is around 8–9 per cent.
The latest investment commitments from Japan reach $23.6 billion, equivalent to approximately Rp 401 trillion. Meanwhile, South Korea has recorded investment commitments of $10.3 billion, or about Rp 173 trillion.
Role of Danantara in Attracting Investors
The presence of Danantara, as Indonesia’s sovereign wealth fund, has provided significant impetus in building investor confidence. Rosan explained that Danantara’s existence makes investors more confident to participate in joint investment schemes or co-investments.
Several investment projects have already entered advanced negotiation stages. This includes collaborations with Lotte Chemical and POSCO, with potential joint investment values estimated at around $6 billion. This indicates that projects underway in Indonesia are yielding positive results.
“If they see good and stable returns, they will definitely want to expand their investments. This is what we hope for,” said Rosan.
Political Stability Key to Long-Term Investment
Rosan assessed that investors’ interest entering the second phase of investment serves as an important indicator that projects in Indonesia offer promising returns. Companies such as KCC Glass, POSCO, and several others have expressed intentions for further expansion.
One of the main factors attracting long-term investment is Indonesia’s political stability and security. This was directly acknowledged by investors in various meetings. The government is committed to following up on the various memoranda of understanding (MoUs) that have been agreed upon to ensure swift realisation. It is hoped that these investments will have a tangible impact on the national economy, particularly in job creation.
“We see this as a very positive signal. The incoming investments will continue to grow and provide benefits to the national economy,” Rosan stated.