Many Korean Investors Want to Enter RI, But This Is Hindered Lifestyle – 2 hours ago

Jakarta, CNBC Indonesia – Indonesia is often referred to as a world magnet because it has ‘treasures’ in the form of abundant natural resources. After benefiting from boom coal for two decades, now Indonesia is blessed with nickel resources. These mining products are often called ‘treasures’, one of which is really needed to realize a green economy.

This also makes Indonesia look attractive in the eyes of world investors. Chairman of the South Korean Chamber of Commerce and Industry in Indonesia, Lee Kang Hyun, was outspoken about how Indonesia is the main destination country for Ginseng Country investors.

“After the pandemic, many Korean entrepreneurs want to go to Indonesia, first place. Every day I receive 3-4 Korean companies who want to come to Indonesia,” said Lee, when he was a speaker at the workshops entitled ‘Towards Indonesia-Korea Greener Economy Partnership” was held FForeign Policy Community of Indonesia (FPCI) collaborated with the Korea Foundation, on Friday (27/10/2023).

The Ministry of Public Works and Public Housing continues to improve connectivity to the National Capital Region (IKN) of the archipelago, one of which is by accelerating the construction of toll roads leading to the IKN Central Government Core Area.  (Doc. Ministry of PUPR)Photo: National Capital (IKN) of the Archipelago (Doc. Ministry of PUPR)

According to Lee, many South Korean companies are interested in investing in the Indonesian National Capital (IKN), especially for development smart city. Moreover, Korea has advantages in the field of technology that have been proven in the world. Apart from that, Hyundai, a well-known automotive company from Korea, has also committed to building an Electronic Vehicle (EV) ecosystem in Indonesia.

However, according to Lee, Indonesia’s position, which will soon face a political year, presents economic uncertainty. Many Korean investors refrain from making important business decisions because they are worried that there will be a sudden change in policy after the government changes. This could certainly be dangerous for their business.

Lee added, attitude wait and see This investment will likely last until next June.

Wait and see “That’s not very good, yes, so the government should be able to provide certainty to investors,” said the man who also serves as COO at Hyundai Motor Asia Pacific HQ.

Meanwhile, Deputy for Investment Promotion at the Investment Coordinating Board (BKPM), Nurul Ichwan, said that the government transition would not bring drastic policy changes to the detriment of investors. In particular, he touched on the nickel downstream policy which is currently Indonesia’s main attraction in global eyes. According to Ichwan, this cannot be ignored by any new president who will be elected next year.

“I am sure that there will be no leader candidate who will change the industrial downstream policy because this is the only material for our negotiations globally,” he said.

Korea itself, according to BKPM records, is one of the most strategic investors in Indonesia. In the field of green economy, Indonesia and Korea have signed a mega project worth US$9.8 billion or IDR 142 trillion. This megaproject is a collaboration between the LG consortium and the BUMN IBC consortium, which consists of LG Energy Solution, LG Chem, Huayou, LX International, Posco Future M, Antam and IBC.

The initial steps for this project start with the construction of a battery cell factory in Karawang with a total investment of US$ 1.1 billion where the factory will commercially produce 10 GWh of battery cells in April 2024. Furthermore, the mega project investment will continue with the construction of a smelter factory, a precursor and cathode, as well as the mining collaboration that ANTAM currently has in Buli, Halmahera.

[Gambas:Video CNBC]

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