JOKOWI TARGETS FOREIGN INVESTMENT ON TECH-INFRASTRUCTURE
"South Korean's infrastructure-based technology and 5G development investment in Indonesia"
By SBI Team
Surabaya, 2019 - Bahlil Lahadalia, the head of Badan Koordinasi Penanaman Modal (BKPM) visited South Korea to facilitate the investment realization plan, which belongs to a number of companies. The realization plan is projected to happen next year. Furthermore, many of the South Korean investors are interested in investing their capital in the Information Communication Technology (ICT) sector.
During his visit in South Korea, Bahlil held a meeting together with several leaders of companies such as LG International, SK Networks, Daewoo Shipbuilding & marine Engineering (DSME), SK E&C, Doosan, Lotte Group, Hyundai Motor Company, Hankook Tire & Technology, and CJ Group. Currently, LG International is evaluating the investment opportunity in the ICT sector. On top of that, the company is also reviewing the battery sector for electric cars and biodiesel. As for the investment in the ICT sector, LG is currently considering a partnership together with DKI Jakarta province, Indonesia’s current capital city. On the other hand, during the meeting, the CEO of LG International, Chun-Sung Yoon, suggested that the integrated transportation system should be implemented in other regions as it is possible to do so, including the new capital city of Indonesia.
Meanwhile, SK Networks, a Korean telecommunications company, is currently planning to invest in 5G technology development in Indonesia which will begin in early 2020. Not only that, through a collaborative project with PT. PAL Indonesia, Daewoo Shipbuilding & Marine Engineering has also provided training for Indonesian labor in order for Indonesia to be able to build submarines independently in the future.
In hopes of reaching the investment target, President Jokowi has asked BKPM to help the investors who are interested in investing their capitals in Indonesia. The Head of the BKPM previously recorded the realization of direct investment in the third quarter of 2019 which amounted to IDR 205.7 trillion, this figure rose 18.4% compared to the same period in 2018 which was IDR 173.8 trillion. The realization of domestic investment (PMDN) rose 18.9% to IDR100.7 trillion, while foreign investment (PMA) rose 17.8% to IDR 105 trillion.
In line with the achievements of the third quarter of 2019, the total investment realization has reached IDR 601.3 trillion over the first nine months of 2019, up 12.3 per cent over the same period of 2018. Meanwhile, the total PMDN investment has reached IDR 317.8 trillion, while PMA amounting to IDR 317.8 trillion. Overall, the total investment is still within range with the end-of-year target of IDR 792 trillion.