Indonesia is expecting investments totalling of up to US$12 billion from Korean firms working on various industrial, infrastructure and metal processing projects.
Industry Minister MS Hidayat said they are expecting several investment projects in infrastructure and smelters. However, Hidayat did not specify the firms in these projects, but according to the Investment Coordinating Board, several of Korea’s major firms are expected to invest in infrastructure projects, including a power plant and a cruise terminal.
Posco Energy Co., an affiliate of Korea’s steel giant Posco, kicked off the construction of a 300-kilowatt fuel cell power plant at Ancol Dreamland Resort in Pademangan district, North Jakarta. The power plant is estimated to cost US$3 billion and is funded by the Korea International Cooperation Agency (Koica).
Meanwhile, Samsung reportedly will be involved in the construction of infrastructure at Benoa cruise terminal in Bali and is seeking the opportunity to build a mineral-processing smelter in Indonesia.
Hidayat said that Indonesia anticipated much higher inflows of investment from South Korean firms following the completion of ongoing negotiations on the comprehensive economic partnership agreement (CEPA), the agreement is due to be concluded in the next year or two.
Furthermore, Indonesia and Korea would conduct a bilateral meeting to discuss strategies to boost future trade and investment in both countries. Among the big plans was the joint production of eco-friendly vehicles, including hybrid and electric cars, agreed by both by President Susilo Bambang Yudhoyono and President Lee Myung-bak of Korea.
Indonesia is gearing up to develop low-emission vehicles to help it reduce greenhouse emissions by 2020. Already Japanese automakers have expressed interest in developing eco-cars in New Arrivals
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