The investment will be carried out through the Indonesia-Korea Business and Investment Forum 2018 as well as marking the commemoration of diplomatic relations between the two countries that have been in good shape for 45 years.
"The forum reflected the great enthusiasm of Korean businessmen to further encourage business collaboration with Indonesia, both in the form of business expansion and new investments in several prospective industrial sectors," Industry Minister Airlangga Hartarto noted in a statement from Seoul on Wednesday.
The six manufacturing industries from South Korea that have been committed to investing in Indonesia are LS Cable & System, Parkland, Sae-A Trading, Taekwang Industrial, World Power Tech, and InterVest.
LS Cable & System has partnered with PT Artha Metal Sinergi to develop the electrical cable industry sector worth US$50 million in Karawang, West Java, followed by Parkland, with funds worth $75 million, to build the footwear industry in Pati, Central Java; while Sae-A Trading invested up to $36 million for the textile and garment sector in Tegal, Central Java.
Furthermore, Taekwang Industrial will build a footwear industry worth $100 million in Subang and Bandung, West Java.
In addition, World Power Tech, with its local partner PT NW Industries, is investing $85 million to develop turbine and boiler manufacturing industries in Bekasi, West Java.
Moreover, InterVest is collaborating with Kejora Ventures, which invests US$100 million, in startup financing services (venture capital) in Jakarta. Thus, the total investment reached $446 million.
The Minister of Industry believes that the established cooperation can encourage the national manufacturing industry to further increase the added value of domestic raw materials and boost the absorption of local labor.
"This can spur inclusive economic growth, especially through the downstream program," the industry minister stated.
The step to build synergy by industry players of both countries is also expected to support the implementation of Making Indonesia 4.0. One of the other measures include building an innovation ecosystem, with sustainable technology transfer, to support the industrial revolution 4.0.
"We are optimistic that relations between the two countries are very promising in the coming years and that will be a strong basis for further relations between the two countries, especially in building the economy," Hartarto stated.
Reporting by Sella Panduarsa Gareta
Editing by Otniel, Suharto