To encourage investment realization, we along with the SOE minister visited South Korea to discuss the downstreaming of the EV (electric vehicle) battery
Jakarta (ANTARA) - The Indonesian government has been aggressive in picking up investment from South Korea as was demonstrated by the realization of investment from the country that jumped by 340 percent in the second quarter (Q2) of 2020.

Based on the Investment Coordinating Board (BKPM) data, investment realization from South Korea in the April-June 2020, second quarter period, reached US$552.6 million, or a 340-percent rise as compared to US$130.4 million in the first quarter January-March 2020 period.

"This is a positive signal. Indonesia is still able to retain the investors’ attention in the midst of the COVID-19 pandemic. Hence, we must be serious in our efforts to facilitate it until it is accomplished. In accordance with the president's direction, the investments we encourage are those that support economic transformation, have added value, and of course, also be labor-intensive investment. Indonesia needs jobs and investment solutions," BKPM Head Bahlil Lahadalia noted in a statement in Jakarta, Monday.

When viewed based on the first semester period of January-June 2020, investment realization from South Korea also rose by 25 percent, with a total of US$683 million, as compared to US$548.4 million during the corresponding period in 2019.

Lahadalia noted that the BKPM will also strive to attract South Korean investors to continue to invest in Indonesia, particularly in the downstream industry.

To this end, Bahlil and State-Owned Enterprises Minister Erick Thohir had paid a visit to South Korea on September 23-24, 2020, to follow up on several investment plans for companies from South Korea in Indonesia.

"To encourage investment realization, we along with the SOE minister visited South Korea to discuss the downstreaming of the EV (electric vehicle) battery," Bahlil expounded.

Meanwhile, Thohir noted that even in the midst of the COVID-19 pandemic, the Indonesian government had remained aggressive in bringing in investment.

"We must stay optimistic. Indeed, the current situation is replete with challenges. However, believe me, the government continues to make efforts. Our visit to South Korea was in response to the serious interest of several Korean companies. This means Indonesia has an attraction, and we are following up on it," Thohir explained.

Since 2015, South Korea has become the country of origin for the seventh-largest investment in Indonesia, after Singapore, Japan, China, Hong Kong, Malaysia and the Netherlands. South Korea posted a total investment of US$7.7 billion.

Based on data available at the BKPM Operations and Escort Center (KOPI), investment from South Korea in Indonesia from 2016 to the semester I of 2020 was dominated by the electricity, gas, and water sector; the machinery, electronics, medical instruments, electrical equipment, precision, optics and watch industries; chemical and pharmaceutical industry; leather goods and footwear industry; and other industries.

Based on the location, most South Korean investment is in Java, followed by Kalimantan, Sumatra, Papua, and Maluku.


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Translator: Ade Irma, Azis Kurmala
Editor: Fardah Assegaf
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