Indonesia President secures $18b investment commitment from S. Korean investors
JAKARTA (TheInsiderStories) – President Joko Widodo witnessed signing of agreements of business deals between South Korean companies and their Indonesian counterparts amounting to US$18 billion.
The deals include $15.8 billion investment plans from six South Korean companies, and $2.2 billion agreements between companies from the two Asian nations, according to a statement from the Secretary Cabinet on Monday.
The business agreement covering the electricity sector, including renewable energy, animal feed industry, the film industry, the footwear industry, and the pharmaceutical industry.
President Joko Widodo is currently visiting South Korea for a state visit and will then visit Russia.
The announcement and signing of the MoUs were attended by the South Korean Minister of Commerce, Industry and Energy HE Joo Hyunghwan. Details of the business deal that was announced in Seoul, South Korea today, dated May 16, 2016 is as follows:
(1) KOGAS declares commitment to invest in gas infrastructure worth US$10 billion. Lotte Chemical is committed to invest in the petrochemical sector worht US$4 billion, CJ Group is committed to invest in the animal feed industry and the film industry worth US$2.1 billion.
(2)Daewoong Pharmaceutical has declared commitment to invest in the bio-pharmaceutical raw materials worth US$100 million; Parkland sets investment commitment for the footwear industry with an investment of US$83.5 million.
(3) Posco plans to invest in Phase II Posco steel project with an aim to increase production to 10 million tonnes.
Meanwhile, four MoUs were signed by the South Korea and Indonesian companies in the field of investment.
(4) KOGAS and PDPDE South Sumatra signed an agreement,for the construction of gas pipeline, connecting Tanjung Api-Api to Bangka Island $ 600 million.
(5) KORBI and PT Coffindo signed an agreement to develop solar power plant with an investment of US$100 Million.
(6) KOMIPO, Posco Engineering and PT Putra Sulindo East, signed a deal to develop hydro power project in Southeast Sulawesi with an investment of US$230 million.
(7) KOMIPO, Samtan, PT Indika Energy Multi International and Marubeni for the third expansion in Cirebon power plant with an investment of US$1.27 billion.
Ambassador of the Republic of Indonesia to Korea John A Prasetio welcomed the investment agreements, saying that the desciptions as a step forward. Expected implementation in the field will also be fast.
BKPM data showed more than 2,300 investment projects – worth US$1.21 billion – were realized by South Korean companies in 2015, making it the fifth-largest foreign investor in Indonesia.
Indonesian Chamber of Commerce and Industry Chairman Rosan P. Roeslani said South Korea is a strategic partner for Indonesia in areas of economy, trade and investment.
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Source: The Insiderstories
Indonesia President secures b investment commitment from S. Korean investors