South Korea Invests in Infrastructure, Electricity Projects
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The Investment Coordinating Board (BKPM) said that South Korean investors will invest in numerous sectors in Indonesia. BKPM chief Thomas Trikasih Lembong said in this week alone, several project agreements will be signed.
“I’m expecting for several infrastructure and electricity projects to be signed this week. The value is about US$200 million (approx. Rp2.6 trillion),” Thomas said during the sidelines of the Indonesia-Korea Business Summit at the Shangri La Hotel in Jakarta, Tuesday, March 14, 2017.
According to Thomas, many South Korean factories have opened in Indonesia, such as textile and footwear factories. The factories’ operation has employed more than 500,000 people.
At the Indonesia-Korea Business Summit, the BKPM and the Korea Trade Investment Agency (KOTRA) signed a MoU as a way to promote investments between the two nations.
“We hope this will help both Indonesian and South Korean companies in developing their business,” Thomas said.
Thomas said that most of the country’s investments are in the manufacturing sector, accounting for 71 percent of their investment value from 2012 to 2016.
The investments are aimed at both countries’ leading sector, and will cover areas including information exchange, documentation, publication, and others.
South Korea is Indonesia’s third-biggest investor today after Singapore and Japan. From 2012 to 2016, South Korean companies invested a total of US$7.5 billion for 7,607 projects in Indonesia.
Questions & Answers
Q.Which specific sectors are seeing investment from South Korean companies in Indonesia?
Which specific sectors are seeing investment from South Korean companies in Indonesia?
South Korean investors are putting money into numerous sectors, with a significant focus on manufacturing, infrastructure, and electricity projects. Textiles and footwear factories are also mentioned as existing South Korean operations.
Q.What is the total value of investment made by South Korean companies in Indonesia over the past five years?
What is the total value of investment made by South Korean companies in Indonesia over the past five years?
From 2012 to 2016, South Korean companies invested a total of US$7.5 billion in Indonesia. This investment was spread across 7,607 different projects within the country.
Q.Where does South Korea rank among the largest foreign investors in Indonesia currently?
Where does South Korea rank among the largest foreign investors in Indonesia currently?
Currently, South Korea is Indonesia’s third-biggest investor. It is positioned behind Singapore and Japan, which are the two leading foreign investors in the country.
Q.What proportion of South Korean investment in Indonesia has been directed towards the manufacturing sector?
What proportion of South Korean investment in Indonesia has been directed towards the manufacturing sector?
The manufacturing sector has received the majority of South Korean investment in Indonesia. From 2012 to 2016, manufacturing accounted for 71 percent of their total investment value.
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