South Korean Investment in Indonesia Reaches USD11.3 Billion in the Last 5 Years

South Korean investors' interest in Indonesia remains high. This is marked by the inauguration of Dongsung Chemical, a South Korean chemical company that produces polyurethane (PU), on Wednesday (30/04), in Karawang, West Java.

Minister of Investment and Downstream Industries/Head of the Investment Coordinating Board (BKPM) Rosan Perkasa Roeslani, who participated in the factory operational inauguration ceremony, conveyed the importance of this investment as an indicator that Indonesia remains an attractive investment destination, even for companies with high-technology products.

Dongsung Chemical's Largest Production Facility

Built on a 82,000 square meter land with a building area of 23,000 square meters, this factory is the largest production facility owned by the company, even exceeding production capacity in its home country.

Dongsung Chemical's products are used in various sectors, such as:

• Automotive industry (seats, headrests, interior linings)
• Footwear (shoe soles and adhesives)
• Household goods (mattresses, sofas, waterproof coatings)
• Manufacturing and construction (sealants, adhesives, surface protection)

Indonesia as a High-Technology Production Hub

Minister Rosan emphasized the importance of this investment as an indicator that Indonesia remains an attractive investment destination, even for companies with high-technology products.

"The presence of this factory once again proves that Indonesia is not only an investment destination that remains attractive to investors but is also trusted to become a center for the production and export of high-technology products. This investment will create jobs and strengthen Indonesia's position in the global supply chain," said Rosan.

Open for Business and Industrial Downstream

On this occasion, Rosan also stated that the government actively continues to enhance cooperation with Indonesia's strategic partners to invest in the country. Moreover, according to him, currently, based on the direction of President Prabowo, Indonesia is very open for business, especially those aligned with the government's agenda in promoting industrial downstream and creating quality jobs.

South Korea: Indonesia's Strategic Investor

In the last five years (2020-2024), South Korea has been recorded as the 7th largest source of foreign direct investment (FDI) in Indonesia, with a total investment of USD11.3 billion.

Rosan believes that the cooperation between South Korea and Indonesia that has been going well must be maintained and even enhanced. "I believe the actual investment realization figures are much larger, as there are investments from Korea entering through other countries such as Malaysia or Singapore," continued Minister Rosan.

Karawang as a Global Strategic Hub

For Dongsung Chemical, the factory in Karawang is an important part of the company's long-term growth plan. Dongsung Chemical Chairman Baek Jeong-ho said that his investment in Indonesia is not only to increase production capacity but also part of the company's strategy to continue growing.

"This new factory in Indonesia is the best PU system production base in Southeast Asia, serving as a global strategic hub reaching from Asia, Latin America, to Europe. This is not just an expansion of production facilities but also an important milestone in expanding Dongsung Chemical's technology and global vision," said Baek.

Positive Trend of South Korean Investment

Based on data from the Ministry of Investment and Downstream Industries/BKPM, in the first quarter of 2025, South Korea recorded an impressive investment performance by ranking seventh as the largest country of origin for Foreign Direct Investment (FDI) in Indonesia. During this period, South Korea's investment value reached USD683.29 million spread across various sectors.

This trend reflects the consistent interest and optimism of South Korean investors toward investment opportunities in Indonesia.