"The strategic partnership has developed well so far."Jakarta (ANTARA News) - South Korea`s investment in Indonesia this year is expected to reach US$12 billion, according to Industry Minister MS Hidayat.
"If Honam Petrochemical Corporation realizes its investment target of around US$6 billion in petrochemicals, total investment from South Korea in Indonesia is expected to reach US$12 billion this year," said the minister here on Friday.
Giving an update on the progress of Indonesia and South Korea`s Comprehensive Economic Partnership Agreement (CEPA), for which negotiations started in July 2012, Hidayat added that Indonesian government officials will meet South Korean entrepreneurs next month to discuss investment potential in Indonesia after CEPA`s implementation.
The minister informed that negotiations over CEPA will take about two years to complete.
Indonesia and South Korea have agreed to increase trade between the two countries to US$50 billion by 2015.
The agreement was announced by President Susilo Bambang Yudhoyono on the final day of his state visit to South Korea in March 2012.
"Indonesia has huge potential, but not all of it has been exploited. Indonesia certainly needs resources and partnerships to develop its economy," he noted.
President Yudhoyono said that this potential had been used as the foundation for the strategic partnership between Indonesia and South Korea, making it possible to target the US$50 billion trade target by 2015.
"The strategic partnership has developed well so far. For example, trade in 2009 was around US$10 billion and the figure rose to US$30 billion in 2011," he added.
President Yudhoyono reiterated that the Indonesian government would ensure that all forms of cooperation with other countries would also be implemented.
Referring to the recent meeting between the Indonesian and South Korean teams, following the launch of the Master Plan for Indonesian Economic Development and Expansion (MP3EI), to specially discuss possible cooperation to promote the program, the President said, "I hope the investment in MP3EI increases trade and Indonesia benefits from it."
President Yudhoyono added that Indonesia had specifically invited South Korea to invest in the steel and infrastructure sectors.
Apart from discussing cooperation opportunities in trade and investment, President Yudhoyono and South Korean President Lee Myung-bak also reviewed possible cooperation in the fields of defense, energy and manpower.
(T.KR-IAZ/A051/INE/KR-BSR/H-YH)
Editor: Priyambodo RH
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