South Korea Increases Investment In Manufacturing Industries Such As Indonesia's Footwear Industry

During 2011, Korea's investment in the manufacturing sector increased by 422% from $220 million a year ago to 1 billion 150 million US dollars. The investment figures are direct investments in the Indonesian manufacturing sector.

The investment from the ginseng industry accounted for 17% of foreign investment in the non oil and gas processing sector in 2011, amounting to 6 billion 770 million US dollars.

Agus Tjahajana, director of the International Industrial Cooperation Department of the Ministry of industry, said that The Republic of Korea The investment has risen sharply with the increasing economic growth in Indonesia in recent years.

A few days ago, he said in Jakarta, "South Korea sees that our economic growth is getting better and more positive. They also see that our market is huge and they want to invest in our country to boost their exports. "

According to the Ministry of industry data, in 2010, the investment of the Republic of Korea in the Indonesian manufacturing sector was 221 million US dollars, a total of 22 projects. Last year, the investment of these countries in 359 projects increased to 1 billion 154 million US dollars.

At the same time, the total investment to Indonesia last year amounted to 1 billion 209 million US dollars and a total of 524 projects. As a result, South Korea's investment in Indonesia is mainly in manufacturing industry.

South Korea's investment targets in various sectors of the manufacturing sector include electronic components, Ready-made clothes Chemical, pharmaceutical, steel, tire and packaging. South Korea's largest investment is in West Java, Central Java and East Java, as well as in several areas outside Java.

In 2011, the investment in manufacturing industry was implemented, of which Krakatau (Pohang) - Posco (project) accounted for half of the total, and the inflow of funds was US $582 million 410 thousand.

On the other hand, two projects in Indonesia were invested by HANKOOK (Hankook) in a significant amount. Next, Sung Chang Indonesia invested $350 thousand in the wig industry in West Java, Banjar. And Sewon's total investment in sports shoes trade in Sidoarjo, East Java, is US $36 million 30 thousand.

Jongkie Sugiarto, vice chairman of the Standing Committee on bilateral economic relations of Kadin, said that with the efforts of South Korean enterprises to migrate their industries to developing countries, South Korea has been investing more and more in our country. He said, "if there is a free trade agreement, their investment in our country will continue to improve."

At the same time, Ade Sudrajat, chairman of the Indonesian textile association, said that the rise in investment in the textile industry in A De was due to the rise in investment in the textile industry. Clothes & Accessories And the garment production center was transferred from China to Indonesia.