Rp173 Trillion Investment from South Korea Strengthens Indonesia's Economic Partnership
President Prabowo Subianto’s state visit to South Korea has become a strategic opportunity yielding concrete achievements. From the trip, investment commitments valued at $10.2 billion—equivalent to approximately Rp173 trillion—have been gathered through a series of memoranda of understanding (MoUs) signed between businesses from both countries.
This information was conveyed by Coordinating Minister for the Economy Airlangga Hartarto after attending the Indonesia–Korea Partnership for Resilient Growth forum in Seoul. In the forum, he represented the President alongside the Minister of Investment and Head of BKPM, as well as CEO of Danantara, Rosan Roeslani.
“In that meeting, MoUs worth $10.2 billion or around Rp173 trillion were signed,” Airlangga stated to the media.
The agreements reached are not limited in scope. They extend to vital sectors that form the backbone of economic transformation. Energy and green transition are one of the main focuses—covering solar power development, carbon capture and storage (CCS) technology, and increasingly urgent renewable energy in the global landscape.
It does not stop there; collaboration also spans the industrial and manufacturing sectors. Steel, batteries, and eco-friendly transportation are on the priority list. This is not merely expansion but a strategic repositioning towards high value-added industries.
Airlangga added that the investment also touches the digital sector and artificial intelligence. Infrastructure and property are not overlooked, including the development of the Bumi Serpong Damai area. On the other hand, institutional synergy between Kadin and KCCI is expected to strengthen sustainable business commitments.
Major South Korean companies have also shown increasing interest. POSCO, for example, is continuing its steel industry expansion in Indonesia. Meanwhile, Lotte is opening opportunities for investment collaboration with Danantara—an indication of growing confidence in the domestic investment ecosystem.
Furthermore, the achievements from Seoul complement the results of the previous visit to Japan, which yielded investment commitments of $23.6 billion or approximately Rp401 trillion. In total, both visits have secured potential investments up to Rp574 trillion.
“This means that the President’s visits to these two countries have resulted in investment commitments of Rp574 trillion,” Airlangga said.
This figure is not just impressive but also reflects Indonesia’s resilience amid global geopolitical uncertainties. While many countries face pressures, Indonesia continues to radiate appeal to international investors.
“This is a very significant figure because, in this uncertain geopolitical situation, Indonesia remains attractive to investors from both Japan and Korea,” he continued.
The government, on the other hand, is not standing idle. Efforts to improve the investment climate are being intensified through debottlenecking mechanisms—an approach to unravelling structural barriers that often hinder investment realisation.
“We are preparing debottlenecking mechanisms so that all issues faced by the business world can be resolved quickly,” he emphasised.
Dialogue between Indonesia and South Korea has also been constructive. This aligns with the bilateral meeting between President Prabowo and South Korean President Lee Jae Myung, which resulted in new understandings to strengthen the strategic partnership between the two countries.
Ultimately, this cooperation is not just about numbers and documents. It is expected to become a catalyst for sustainable economic growth, accelerate national industrial transformation, and solidify Indonesia’s position in the global supply chain across key sectors.