April 29, 2025 | 02:42 pm
TEMPO.CO, Jakarta - Nineteen South Korean companies are set to ramp up their investments in Indonesia by an additional US$1.7 billion, or approximately Rp30 trillion, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. The companies have already invested a combined US$15.4 billion, or around Rp269 trillion.
"Among the companies is Lotte Chemicals which plans to inaugurate a large petrochemical plant between September and October this year," Airlangga said during a press conference at the State Palace in Jakarta on Monday, April 28.
As part of the investment, Airlangga said, Lotte Chemicals has offered Indonesia the opportunity to take a stake. President Prabowo Subianto has approved Indonesia’s participation and has tasked the country’s sovereign wealth fund, Danantara, with conducting a review and pursuing the plan, Airlangga said.
Airlangga highlighted several other South Korean firms with growing footprints in Indonesia. KB Financial, for instance, has reported profits after four years of managing Bank Koperasi Indonesia (Bukopin) following its acquisition. Hyundai Motor's local operations are said to be performing relatively well, and Posco Holdings announced that its unit, Pohang Steel, is preparing a partnership with Krakatau Steel.
The two steelmakers have mapped out a production target of up to 10 million tons.
EcoPro has invested nearly US$500 million in Morowali, where it is producing precursor cathodes and operating nickel smelters. KCC Glass, which has facilities in Batang, is planning an expansion aimed at helping domestic prices align with regulated natural gas pricing policies.
Meanwhile, LX International, active in the coal and nickel sectors, plans to continue investing up to US$500 million, Airlangga said. Ammunition manufacturer Poongsan Corporation is also in talks with the government about potential projects.
Another firm, SK Plasma, is currently building a plant in Cikarang.
Airlangga said South Korean executives expressed appreciation for their recent meeting with President Prabowo, which they described as open and constructive.
"The President listened to each of them individually, and that level of openness really impressed them," said Airlangga, a former Golkar Party chairman.
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