President Director of PT KSP Ridi Djajakusuma, along with General Manager of Industrial Estate Nur Wijayanto, in an official statement in Jakarta, Friday, stated that they had undertaken a working visit to South Korea on October 18-20 2022.
During his visit, Djajakusuma visited several companies, including CEO Dongjin Joonkyu Lee and several other South Korean companies, such as KGT Asset Management and Seo-Hyun Partners LLC. The meeting was held at the Seoul Posco Building.
“Dongjin already has two factories in Cilegon. During this visit, I speak directly with CEO Dongjin Joonkyu Lee to discuss the possibility of the chemical and textile company opening a third factory in the Cilegon Industrial Estate. Indonesia has been one of the investment destinations for Korean companies,” Djajakusuma remarked.
Based on data from the Investment Coordinating Board (BKPM), this year, the government has pocketed investment commitments from several South Korean companies, with a value of Rp100.69 trillion, or around US$6.78 billion.
During the 2010-2021 period, there were a total of 24,579 South Korean investment projects in Indonesia. South Korea has the most entries in 2020, at 5,468 projects.
Djajakusuma remarked that Dongjin is one of the two thousand South Korean companies in Indonesia, in addition to Krakatau Posco, Lotte Group, LG Electronics, and Hyundai. He noted that the presence of Lotte Group in the Cilegon Industrial Estate has a positive impact on the South Korean retail company.
“Hence, I hope that Dongjin would increase the value of its investment in Indonesia by opening an additional factory in the Cilegon Industrial Estate. We have prepared land in Krakatau 3 for investors looking to open a new factory,” he remarked.
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Wijayanto also remarked that currently, the South Korean company, with the largest investment in the Cilegon Industrial Estate, was Lotte Chemical. In 2017, Lotte Chemical built a petrochemical plant in Krakatau Industrial Estate Cilegon (KIEC), with an area of 80 hectares.
President Joko Widodo (Jokowi) in July 2022 met with 10 CEOs of Korean companies in Seoul, and the meeting resulted in an investment commitment of Rp100 trillion from South Korea.
Wijayanto emphasized that investors will not face complications in obtaining permits to invest, as policies in the investment sector were simplified through Law Number 11 of 2020 on Job Creation, especially related to the issuance of business permits and the provision of fiscal incentives through the Risk-Based Online Single Submission (OSS) system.
“Many companies from South Korea are investing their assets in Indonesia, especially in the Cilegon Industrial Estate. This is proof that our infrastructure is very decent and adequate. Hence, investors just need to bring their suitcases to Cilegon, as all permits are made easier and faster as part of the government’s commitment, BKPM and Cilegon and Banten Regional Governments,” he remarked.