Mon, 19 Jul 2010


VIVAnews- South Korea will be investing around U$ 6 billion to 10 billion in Indonesia this year. “I went to Korea yesterday and this has been their commitment this year,” the Investment Coordinating Board (BKPM) Head Gita Wirjawan said in Jakarta on July 14.

She also said there had been four Korean companies that have conveyed their interests in investing in Indonesia. The said companies are Pohang Steel and Iron Coorporation (Posco), Hankook Tire Co. Ltd, an electronic company and a textile company.

For the electronic company, she said, the minimum fund to be invested is U$1 billion. “Indonesia is in the shortlist of 2 to 3 countries. They will create hub products for South East Asia”.

Meanwhile, the textile company will be investing US$ 300 million while Hankook’s value of investment remains undisclosed.

As for Posco, Wirjawan said the company’s president director had declared his commitment to sign an agreement contract this month. “They have agreed on the last agreement,” she said.

The agreement on the development of joint factory between PT Krakatau Steel and Pohang Steel and Iron Coorporation (Posco) can be implemented in the end of July 2010.

Regarding land issue, both parties have agreed to set the price at US$ 72-74 per meter. Earlier, Posco expected the price to be repressed to US$ 65 per meter while Krakatau Steel wanted US$ 80 per meter.

For the early stage, the stock ownership between Posco and Krakatau Steel is made 30 percent and 70 percent. Later the composition will be changed into 45 percent for Indonesia and 55 percent for Posco according to the factory’s construction period.