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South Korea is looking forward to investing more in Indonesia. (Image via: Republika)
South Korea Looks Forward to Digital Investment in Indonesia
According to the South Korean envoy for Indonesia, Kim Chang Beom, S. Korea is staring at Indonesia for Foreign Direct Investment (FDI) on the digital sector. For S. Korea, Indonesia is fertile soil for digital investment, considering the rapid development of Information and Communication Technology (ICT).Kim pointed out that the investment climate in Indonesia is alleviating. However, S. Korean investors should keep these things in check when it comes to investment in Indonesia such as transparency, deregulation, and additional incentives when it comes to export-related investment.
Investment Coordinating Board tabulated a 71.38% decrease in S. Korean investment in Indonesia from US$940 million in the 1st quarter of 2018 to US$269.5 million in the 1st quarter of 2019. In accordance with these statistics, S. Korea currently sits on the 8th position in terms of the top 10 countries with the biggest investment in Indonesia. In 2018, S. Korea sat on the 3rd.
Not only ICT but S. Korea also expects to invest in lifestyle sectors such as content making, cosmetics, and healthcare. The most recent pharmaceutical investment was made when Chong Kun Dang Pharmaceutical (CKD Pharma), together with PT OTTO Pharmaceutical Industries, to jointly building a halal-based oncological medicine factory in Indonesia on Tuesday (9/7).
All this time, S. Korea has only invested in the basic industry, like when Lotte Chemical invested about US$4 billion in building its factory in Cilegon, Banten Province, Indonesia. The laying of the first stone was done in December 2018.
In terms of mining and steel, S. Korea also looked to Indonesia. Pohang Iron and Steel Company (POSCO) also invested US$4 billion in PT Krakatau Steel Tbk, also by building a steel factory in Cilegon.
When it comes to content creation, S. Korea and Indonesia are looking forward to establish “Webtoon Institute” since Indonesian people just love reading Webtoon, a digital comic from LINE, an idea proposed by Indonesian animation house, Show Enterprise Indonesia, and S. Korean rising graphic design company, Kenaz Corporation, according to statement by Seong Hyun Oh, the CEO of Show Enterprise, Thursday (11/7).
Source: https://www.cnnindonesia.com/ekonomi/20190711180154-92-411368/korea-selatan-lirik-investasi-digital-di-indonesia
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