Category Archives: Asean

Europe announces a fresh, ‘credible’ Greek rescue deal

Deutsche Welle, 22 July 2011 


Greece’s second aid package is
larger than the first
European leaders say the eurozone, the International Monetary Fund and the private sector will all contribute towards a second package of emergency loans for Greece, as a debt-dominated summit concludes in Brussels.
European Union President Herman van Rompuy said after Thursday’s summit in Brussels that the bloc had reached three important decisions which had unanimous support within eurozone.
“We improved the Greek debt sustainability, we took measures to stop the risk of contagion, and finally, we committed to improve the eurozone’s crisis management,” Rompuy said in the opening moments of his official address.
The EU president said that the instability of the Greek economy, coupled with the resultant jitters on international markets, ultimately could have threatened the single European currency and the economic recovery in Europe and the wider world.
“Convening this meeting focused the minds and accelerated finding a solution. I could not allow a difficult situation to become a dangerous one,” Rompuy said.
The nuts and bolts
European leaders in conjunction with the International Monetary Fund (IMF) agreed to lend Greece an additional 109 billion euros (157 billion dollars) in order to cover its financing shortfalls and prevent Athens from defaulting on its sovereign debt.
The program will include lower interest rates and extended maturities as well as a voluntary contribution from private sector financial institutions amounting to 37 billion euros, according to a statement released by the leaders after the summit.
Merkel and Sarkozy struck an
agreement before the summit
European Central Bank chief Jean-Claude Trichet reacted coolly to concerns that even voluntary participation by the private sector could provoke rating agencies to downgrade Greece’s credit worthiness.
“I don’t think experts consider that what has been done would trigger a credit event,” Trichet said after the summit.
‘European package’
Greece’s second aid package, including private contributions, will total at least 146 billion euros. The package comes in addition to the 110 billion euros Athens was promised as part of its first bailout in 2010.
“The only thing we’re asking for is the right to make deep changes in our country to make our country a viable one, one of growth and jobs creations,” Greek Prime Minister George Papandreou said. “This is a European success, a European package.”
The breakthrough deal was made possible after German Chancellor Angela Merkel and French President Nicolas Sarkozy came to an agreement in Berlin on Wednesday.
Sarkozy said that Europe was prepared to stand with Athens and guarantee its credit worthiness in the event that credit agencies declare Greece in limited default.
“We have agreed to create the beginnings of a European Monetary Fund,” he said.
Author: Spencer Kimball, Mark Hallam (AFP, Reuters, dpa)
Editor: Joanna Impey


Paul Hellyer – Abolishing Fed and new energy disclosure key to US survival

Chinese FM calls for further ASEAN Plus Three cooperation for regional prosperity

Foreign ministers and delegates of ASEAN and China, Japan and the
 Republic of Korea, pose for group photos during the ASEAN and China,
Japan and the Republic of Korea foreign ministers’ meeting held in Bali,
Indonesia, July 21, 2011. (Xinhua/Chen Duo)

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”

South Korean Firms Eye Indonesia as a Base

Jakarta Globe, SK Zainuddin | July 03, 2011
Related articles
As Indonesia’s economic stock rises, more global companies are looking for opportunities in Southeast Asia’s largest economy, including multinational firms from South Korea.
A growing number of Korean companies are looking to move their regional headquarters from Singapore and Kuala Lumpur to Jakarta, said Moon Jae-do, deputy minister for international affairs at Korea’s Ministry of Knowledge Economy.
In an exclusive interview with the Jakarta Globe, he said Korean companies were keen to invest in Indonesia and participate in the government’s new economic master plan, or MP3EI.
“Many large Korean companies are moving their regional headquarters to Jakarta,” he said. “Indonesia is a big market, and it’s growing fast and can become a manufacturing base for Korean companies.”
According to Moon, Korean companies plan to invest $12 billion in Indonesia over the coming years in industries such as steel, retail, finance and infrastructure. This figure includes the funds to be contributed by steelmaker Posco under its $6 billion deal with state-owned Krakatau Steel.
The joint venture to build one of the largest steel plants in the region broke ground in December. The first phase of construction is expected to be completed by the end of 2013.
“Posco is investing in steel plants in order to add value,” said Moon. “Korean companies are looking to bring new technology to Indonesia as they see that Korean technology can complement Indonesia’s natural and human resources.”
In May, Indonesia and South Korea signed a memorandum of understanding on economic cooperation in Bali. The countries agreed to foster partnerships in seven sectors, including industry, energy, agriculture and defense.
The deal was the first concrete action from Seoul following President Lee Myung-bak’s commitment to contribute to the Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (MP3EI) plan, which involves establishing six economic corridors, each with a specific focus.
With more than 1,300 Korean companies operating in Indonesia, the Korean business community is a significant force on the local business landscape. The vast majority of these companies are small- and medium-sized enterprises but increasingly, the chaebols , or larger conglomerates, are now looking at investing in Indonesia.
Apart from Posco, other chaebols that have announced new investment plans include Lotte Mart, Kiwoon Securities, Samsung C&T, LG International, Korea Western Power, Korea South East Power and the SK Group.
Moon noted that more Korean companies would head to Indonesia if Jakarta provided greater incentives and improved the investment climate. The key challenges, he said, were lack of infrastructure and complicated administrative processes.
“The Indonesian government is moving in the right direction as economic policies are more predictable and systematic.”
Moon stressed that if Indonesia wanted to attract more technologically-oriented investment, the government needed to provide greater incentives. This was Korea’s experience when the country started on its journey from being a poor agriculture-based economy in the 1960s to a modern industrialized nation.
“We try to give as much incentives [as we can], such as tax holidays, land allocation and establishing free economic zones to create a positive investment environment,” he added.
“The Korean economy has a good record in having such master plans since the early 1960s where we were able to mobilize resources systematically,” Moon said.
“With the new master plan, Indonesia can become a manufacturing base for Korean companies in the Asean region.”