JAKARTA (TheInsiderStories) - South Korean companies are looking to invest in the electricity sector in Indonesia with combined capacity of 2,000 megawatts (MW) and planned investment amounting to Rp80 trillion ($5.72 billion).
Head of the Investment Coordinating Board (BKPM) Franky Sibarani, said a South Korean state-owned electricity company revealed its interest to take part in a tender for power generation projects in Banten and West Java during a private meeting with Vice President Jusuf Kalla in Seoul last week.
Vice President Kalla also had a private meeting with a telecommunication equipment industry giant which is currently constructing a plant in Cikarang, West Java, with planned investment reaching Rp6 trillion.
“Their third plant is going to be built in Central Java with would create 3,500 job opportunities,” Franky said on Saturday as quoted by tribunnews.com.
Earlier on May, 2015, Franky visited South Korea to promote investment potential in Indonesia and met South Korean officials to strengthen ties between the two countries on trade and investment. During a meeting with South Korean investors, the BKPM chief received an investment commitment of US$9.7 billion from various industries.
For 2015, the BKPM has set a target to achieve a total investment of US$3.36 billion from South Korea. The potential investments are including portion of investments in the $4 billion petrochemical project in Banten province, $2.8 billion for coal gasification in South Sumatra and $2.79 billion project in North Kalimantan.
Additionally, the investors also planned to invest $70 million in a sweetener industry in East Java, $30 million for a power plant in East Java, $37 million for the cattle food industry in East Java and $20 million on the pharmaceutical industry in West Java.
South Korea made up the fourth-largest foreign direct investment in Indonesia by sources after Singapore, Japan and the US. From 2010 through March 2015 period, South Korea made $7.46 billion in investments in the country, according to the latest available data from the BKPM.
BKPM launched a one-stop service in January to make it easier for investors to acquire business permits from central governments, ministries and institutions. The agency plans to integrate the one-stop service for regional governments by the end of this year.
The new projects include a hydropower plant in Lampung with total capacity of 145 megawatts and a garment industry in Central Java that could absorb 4,000 workers.
South Korean companies that already invest in Indonesia are including Posco, the biggest steelmaker in South Korea, which has set up a joint venture with Indonesia’s state owned steel maker PT Krakatau Steel to produce steel slabs for manufacturing. (*)
Facebook
Twitter
RSS