Foreign Investment in Indonesia Doubles in 5 Years... Annual Average Increase of 17.5%

Participants of the 'Team Korea-Indonesia Economic Cooperation Partnership Forum,' held on the 28th (local time) in Jakarta, Indonesia, by the Embassy of the Republic of Korea in Indonesia, the Korean Chamber of Commerce and Industry in Indonesia (KOCHAM), and the Korea Trade-Investment Promotion Agency (KOTRA) Jakarta Trade Center, are taking a commemorative photo.

The Indonesian government recently announced that foreign direct investment (FDI) has doubled over the past five years.

The Embassy of the Republic of Korea in Indonesia, the Korean Chamber of Commerce and Industry in Indonesia (KOCHAM), and the Korea Trade-Investment Promotion Agency (KOTRA) Jakarta Trade Center held the "Team Korea-Indonesia Economic Cooperation Partnership Forum" on the 28th (local time) at the St. Regis Hotel in Jakarta, Indonesia, to discuss ways to expand trade and investment between the two countries.

At the event, Chayo Purnomo, Director of the Indonesian Investment Coordinating Board (BKPM), who gave a presentation on "Measures to Realize Investment Incentives," explained that Indonesia's annual FDI, which was 721 trillion rupiah (approximately 62.6 trillion KRW) in 2018, increased to 1,419 trillion rupiah (approximately 123.2 trillion KRW) last year, growing at an average annual rate of 17.5%, roughly doubling in size. He noted that this ranks Indonesia 18th in the world and 2nd in Southeast Asia.

He also stated that foreign investment in the manufacturing sector increased about 2.7 times during the same period, from 222 trillion rupiah (approximately 19.3 trillion KRW) to 596 trillion rupiah (approximately 51.7 trillion KRW).

Director Purnomo expressed Indonesia's ambition to raise its economic growth rate to an average of 6.4% annually by 2045, aiming to become the world's 4th largest economy by GDP. He emphasized, "Indonesia cannot achieve this alone; investment from various companies, including those from Korea, is necessary."

He added that currently, 81 sustainable investment projects worth 15.9 billion USD (approximately 21.2 trillion KRW) are underway in various sectors such as manufacturing, infrastructure construction, agro-food, tourism, renewable energy, and industrial complex development, urging Korean companies to invest.

Director Purnomo also stated, "The Indonesian government supports investors through pro-business policies such as tax reductions, tariff exemptions, and the introduction of job creation laws, and the Investment Coordinating Board assists companies with administrative inconveniences," expressing anticipation for Korean companies' investments.

Eric Thohir, Minister of State-Owned Enterprises, who attended the event, said in his greeting that the annual trade volume between the two countries, which amounts to 26 billion USD (approximately 34.7 trillion KRW), is expected to double soon, and that public enterprises from both countries are cooperating through technology exchanges in the energy and healthcare industries.

Park Soo-duk, Charg? d'Affaires of the Korean Embassy in Indonesia, emphasized in his opening remarks that Korean companies have established themselves as key economic cooperation partners in Indonesia, investing 1.3 billion USD (approximately 1.7 trillion KRW) in the second quarter alone this year, and stressed the need to expand mutually beneficial economic cooperation by leveraging the complementary economic structures of the two countries.

Lee Kang-hyun, Chairman of KOCHAM, also stated in his welcoming remarks that Korean companies have continued large-scale investments in various fields, starting from the wood industry to textiles, footwear, electronics, steel, petrochemicals, and even the establishment of the electric vehicle ecosystem, and pledged to actively support Korean companies' entry into Indonesia.

This content was produced with the assistance of AI translation services.