REPUBLIKA.CO.ID, JAKARTA -- Indonesia and South Korea have signed several business agreements valued at US$18 billion, Head of the Indonesian Investment Coordinating Board Franky Sibarani noted in a statement received by Antara here on Monday.
The business agreements comprise investment commitments by six companies amounting to $15.8 billion and four memoranda of understanding (MoUs) valued at $2.2 billion.
Sibarani explained that the business agreements covered the electricity sector, including renewable energy and industries, such as animal feed, filmmaking, footwear, and pharmaceuticals.
"These business agreements demonstrate that South Korea has trust in Indonesia's potential areas of investment. The Indonesian government is conducting reforms in several regulations on investment of which some have run effectively," he remarked.
According to Sibarani, the board is confident that the South Korean investors, who have signed the cooperation documents, would be serious to realize their investments in Indonesia.
"President Joko Widodo affirmed that further steps will be taken to ensure that the business agreements can be realized. The board and the Indonesian Embassy in Seoul will monitor the realization process," Sibarani explained.
The six companies that have established investment commitments are KOGAS in the gas infrastructure field, with a value of $10 billion; Lotte Chemical in the petrochemical sector, with $4 billion; and CJ Group in the animal feed and film industries, with $2.1 billion.
The three other companies are Daewoong Pharmaceutical for manufacturing raw materials for the bio-pharmaceutical sector worth $100 million; Parkland in the footwear industry, with an investment of $83.5 million; and Posco for increasing the capacity of its phase II steel unit to 10 million tons.
Meanwhile, the companies that signed MoUs for investment were KOGAS (South Korea) and PDPDE South Sumatra (Indonesia) for the construction of a gas pipeline from Tanjung Api-Api to Bangka Island worth $600 million and between KORBI and PT Coffindo for the development of solar power plants, with an investment of $100 million.
The two other MoUs for investment were signed between Komipo, Posco Engineering (South Korea), and PT Sulindo Putra Timur (Indonesia) for developing a hydropower project in Southeast Sulawesi, with an investment of $230 million; and between Komipo, Samtan, PT Indika Multi International Energy, and Marubeni for the third phase of expansion of a power plant in Cirebon, West Java Province, with $1.27 billion investment.
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