Global Biz

More S. Korean firms expected to invest in Indonesia

(Xinhua)
Updated: 2010-09-28 14:11

JAKARTA - Indonesia expects more large South Korean companies to invest in the country following a $6- billion investment commitment from steel maker POSCO last month, the Jakarta Post quoted an official as saying on Tuesday.

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Gita Wirjawan, chairman of the Investment Coordinating Board ( BKPM), said that Indonesia expected a 15-percent-increase in direct investment from South Korea next year.

Wirjawan said the sharp increase next year was triggered by a recent deal between state-owned steel producer PT Krakatau Steel and POSCO which have agreed to form a 6-billion-dollar joint venture to build a steel plant in Cilegon, Banten.

"South Korean firms have strong bonds between them. Once big players like POSCO enter Indonesia, other companies will consider doing the same," said Wirjawan.

Data from BKPM in 2009 showed that most of South Korean companies' investments went to the metal and machinery sectors, the electronics industry, construction and the textile industry.