JakartaPostAFP-July 27
South Korea has surpassed the US and Japan to become the third-largest foreign direct investor in Indonesia as two Seoul-based companies kickstarted the archipelago’s first electric vehicle (EV) battery plant. Investment Minister Bahlil Lahadalia revealed that South Korean foreign direct investment (FDI) amounted to US$1.3 billion in the second quarter of this year, exceeding inflows from the US and Japan at US$900 million and $800 million, respectively. “South Korea overtook Japan; it’s normally Japan [that invests more]. This is very dynamic,” Bahlil said in a press conference in Jakarta on Monday. The minister did not detail what specific investment had pushed up South Korea’s position but explained that Singapore and China remained in the lead with $4.6 billion and $3.9 billion, respectively. South Korean auto manufacturer Hyundai Motor Group teamed up with LG Energy Solution (LGES) in a joint venture called PT HLI Green Power to erect Indonesia’s first EV battery plant in Karawang, West Java. Inaugurated on July 3, the Karawang factory can produce up to 10 gigawatt-hours of battery cells a year and is meant to produce batteries for 50,000 Hyundai KONA Electric SUVs, AFP reported. Speaking at the launch ceremony, President Joko “Jokowi” Widodo claimed the plant was “the first and largest” in Southeast Asia. Jokowi said the factory was part of the Rp 160 trillion ($9.8 billion) in investment commitments from Hyundai and LG, which would be rolled out “in stages” over the course of years. The President also launched a new industrial complex in Batang, Central Java, on Friday that is set to house more than a dozen manufacturers. Read more at: https://www.thejakartapost.com/business/2024/07/29/south-korea-overtakes-us-japan-in-fdi-to-indonesia.html.
