South Korea Records USD11.3 Billion Investment in Indonesia Over the Past 5 Years
Deputy Minister of Investment and Downstream Industries/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu attended the Indonesia-Korea Business Roundtable organized by The Federation of Korean Industries (FKI) and the Indonesian Employers Association (APINDO) on Monday (28/4/2025) in Jakarta. The forum brought together more than 20 leaders from prominent South Korean companies as a platform for open dialogue to strengthen investment cooperation between the two countries.
Appreciation for South Korea's Investment Commitment
In his remarks, the Deputy Minister of Investment and Downstream Industries expressed his appreciation to South Korea for their trust and commitment to investment opportunities and climate in Indonesia. He explained that investment realization in Indonesia continues to experience significant growth.
"Amid global economic challenges, Indonesia has remained resilient, recording an average economic growth above 5% in recent years. Last year, all economic components grew positively. Household consumption and investment contributed 54% and 29% respectively to Indonesia's GDP, followed by government consumption at 8% and net exports at 2%," stated Todotua.
South Korea's Investment Achievements in Indonesia
Over the past five years (2020-2024), South Korea has invested at least USD11.3 billion in Indonesia, becoming the 7th largest source of foreign investment in the country. South Korean investments have made significant contributions primarily in the sectors of:
- Utilities (electricity, gas, and water)
- Automotive industry
- Machinery and electronics industry
Government's Commitment to Improve Investment Climate
Todotua emphasized the commitment of the Ministry of Investment and Downstream Industries/BKPM in creating a pro-business investment climate, including regulatory revisions.
"There are three main targets we focus on to drive investment growth and increase economic development, namely:
- Simplification of licensing services
- Improvement of a more conducive investment climate
- Enhancement of Indonesia's investment competitiveness
We implement these measures to provide greater certainty for business actors," he explained.
Memorandum of Understanding Signing
During the event, a Memorandum of Understanding was signed between APINDO and FKI to strengthen economic cooperation between Indonesia and South Korea.
In closing, the Deputy Minister of Investment and Downstream Industries invited South Korean entrepreneurs to increase quality investments in Indonesia, focusing on:
- Creation of tangible added value
- Technology and skills transfer
- Integration with global supply chains
Quality investments are expected to deliver broad benefits across various strategic sectors in Indonesia.