JAKARTA (Reuters) -South Korean companies will increase their investment in Indonesia by $1.7 billion, Indonesian economic minister Airlangga Hartarto said on Monday after attending a meeting between a South Korean business association and President Prabowo Subianto.
The planned increase is equal to more than 10% of the $15.4 billion that Airlangga said South Korean firms had already invested in Southeast Asia’s largest economy, said Airlangga.
Prabowo’s office said he met with more than a dozen South Korean companies that have invested in Indonesia, including holding company Lotte Corporation, steel firm POSCO Holdings, glass producer KCC Glass Corporation, and Hyundai Motor Group.
POSCO and KCC Glass were among the firms that planned new investments, Airlangga said, without providing further details.Airlangga said Lotte Chemical Corp’s $3.9 billion large-scale petrochemical plant in Indonesia was expected to start operating by September or October this year.
Indonesia is also in talks with South Korea’s Poongsan Corporation to buy ammunition, he added.
KCC Glass, POSCO, Lotte, and Poongsan did not immediately respond to request for comments.
(Reporting by Stefanno Sulaiman and Ananda Teresia; Editing by John Mair)
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