President Prabowo Subianto met with a high-level delegation from the Federation of Korean Industries (FKI) at the Merdeka Palace in Jakarta on Monday, April 28, 2025, which ended with a commitment of the federation to inject an additional US$1.7 billion (Rp28.6 trillion) into various strategic projects across the country.
The delegation included representatives from 19 South Korean companies that have already invested a combined amount of US$15.4 billion (Rp259.5 trillion) in Indonesia.
Coordinating Minister for the Economy, Airlangga Hartarto, revealed that Lotte Chemical offered to include Indonesia in the ownership structure of its petrochemical plant in Cilegon, Banten, which is scheduled to be inaugurated in September or October this year.
“The President, in principle, agreed to Indonesia’s participation in Lotte Chemical, and Danantara has been assigned to conduct a study and follow up on this investment,” Airlangga told a post-meeting press conference on Monday, April 28, 2025.
He also highlighted the successful turnaround of Bank Bukopin under the management of KB Financial Group, the holding company of KB Kookmin Bank. KB Kookmin began investing in Bukopin in 2018 by acquiring a 22 percent stake and became the controlling shareholder in 2020 after raising its ownership to 67 percent.
“The situation is now profitable. It took them four years, and the bank is now generating positive returns,” he noted.
During the forum, several South Korean firms also made requests for policy support and incentives. KCC Glass, a glass manufacturer, appealed to the Indonesian President for special natural gas pricing (HGBT) for its operations in the Batang Integrated Industrial Estate, Central Java, citing plans for expansion.
“KCC Glass reported to the President that they will be expanding,” Airlangga said.
However, the meeting was marked by the absence of LG Energy Solution (LGES), which had previously committed to a US$9.8 billion (Rp165 trillion) electric vehicle battery project in Indonesia. LGES has since withdrawn, and the Chinese firm Zhejiang Huayou Cobalt Co Ltd (Huayou) has stepped in to take over its role in the country’s growing EV ecosystem.
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