Strengthening South Korean Investment in Indonesia's Growing Economy

Indonesia remains a prime destination for global investment, including significant contributions from South Korea. Over the past two years, South Korean investments in Indonesia have reached $4.9 billion (around IDR 77.8 trillion), with the government actively encouraging further growth.

Nurul Ichwan, Deputy for Investment Promotion at the Ministry of Investment/BKPM, highlighted this during a workshop hosted by the Korea Foundation and the Foreign Policy Community of Indonesia (FPCI) in Jakarta. The event, titled "Indonesia’s 8% Economic Growth Target: How to Attract More Korean FDI?", discussed strategies to increase foreign investment, particularly from South Korea.

South Korea ranked as Indonesia's seventh-largest investor in 2023 and 2024. Key opportunities for investment include renewable energy, digital economy, manufacturing, healthcare, education, and semiconductors. The Indonesian government offers tax incentives of up to 300% for companies engaging in research and development (R&D) and vocational training to attract more investors.

Professor Ko Young Kyung from Yonsei University praised Indonesia’s economic progress but noted challenges such as regulatory uncertainty and infrastructure gaps. He emphasized the need for consistent policies and improved trust-building measures to strengthen bilateral cooperation.

Indonesia has set a 2024 investment target of IDR 1,650 trillion, with 76% already realized by September. The country’s abundant natural resources, competitive costs, and large domestic market remain key draws for investors. However, addressing regulatory hurdles and improving investor confidence will be crucial for sustained growth.

1 SELENGKAPNYA