S. Korea promises more investments in Indonesia

S. Korea promises more investments in Indonesia

JAKARTA (JP): A visiting South Korean energy and trade mission
to Indonesia promised to bring in US$1.1 billion of new
investments for 12 projects and increase annual bilateral trade
to a level of $10 billion in 1998.

Mission leader Un-Suh Park, South Korea's vice minister of
trade, industry and energy, said here yesterday that all the
investment commitments were made by Korean private sector
companies.

They include a $500-million satellite city construction
project located some 30 kilometers south of here, a $150 million
PVC resin plant and a $134 million electronic plant -- all were
committed by South Korea's largest conglomerate, LG International
Corp.

Su-Whan Park, president and chief executive officer of the LG
International, said his group is also investing $280 million in
the construction of an electronic display plant in Cibitung, West
Java.

The construction of the plant, which will produce a wide range
of television components, is expected to be completed in March
next year and start production in May. Su-Whan Park said 50
percent of its products would be exported.

"We are considering, in the near future, divesting a small
percentage of our shares into the Astra Group," Su-Whan Park
said, adding that LG Electronics, a division of the LG
International, has a venture company with the Astra Group called
PT LG Astra Electronics, which produces color television and
audio sets.

During their stay in Jakarta, the leader and members of the
mission, which is comprised of four government officials and 32
businessmen from 27 companies, met with Minister of Trade Satrio
B. Joedono, Minister of Industry Tunky Ariwibowo and Secretary-
General for the Ministry of Mines and Energy Umar Said.

Minister Park said Indonesia and Korea share the view that
they should make further efforts to strengthen trade, investment
and energy cooperation.

Park said he and Indonesian Minister of Trade Joedono had
agreed to increase bilateral trade from $5.4 billion in 1994 to
$10 billion in 1998.

"We believe that both governments will make more efforts to
achieve this trade target. Also, we strongly support private
sectors to expand trade and investments in many other fields,"
Park said.

Currently Indonesia is Korea's sixth largest trading partner,
while Korea itself is Indonesia's fourth largest trading partner.

According to Indonesia's Central Bureau of Statistics,
Indonesia's exports to Korea increased by 16.2 percent to $2.58
billion last year from $2.22 billion in 1993, while Indonesia's
imports from Korea increased by 2.86 to $2.16 billion from $2.1
billion.

Indonesia's exports to Korea are dominated by gas, oil,
minerals and forestry products, while its imports from Korea
include plastics, leather, steel and metals, electronics and
electric products, chemicals, textiles and machinery.

At a meeting with Umar Said, Minister Park said Korea is
willing to develop the Wakom oil field in the western part of
Irian Jaya and seeking possible Korean participation in the
multi-billion dollar Natuna gas project in Riau.

Park said that if Korea is involved in the Natuna project, it
will consider buying more gas from Indonesia, especially from the
Natuna project.

Currently Indonesia is the largest liquified natural gas
supplier to Korea. Indonesia supplies almost 90 percent of
Korea's annual demand of seven million metric tons of natural
gas.

"We expect that Indonesia will remain a stable competitive
supplier of natural gas to Korea," Park said, adding that Korea's
demand for natural gas would increase to 15 million metric tons
by the year 2000 and 20 million tons by 2010. (rid)