Category Archives: Government

Indonesian ruling party to hold congress following revelation of corruption among senior officials


English.news.cn,by Abu Hanifah, 2011-07-21

JAKARTA,July 21 (Xinhua) -- Indonesian ruling political party, the Democrat Party, isscheduled to hold a two-day national congress Saturday following a high-profilecorruption allegation that implicating senior officials at the party asconfessed by the party's sacked treasurer to the media recently.

Allegationon the implication of Anas and several senior officials at the party in ahigh-profile corruption case rife in national media following the confession offormer party's treasurer Muhammad Nazaruddin about it was televised nationwiderecently.

Nazaruddin,who is still at large after being declared a suspect in the corruption casethat was said masterminded by Anas, said Anas bought the votes from the party'scadres that made him seized the chairmanship in the party's congress heldNovember last year.

Nazaruddinalso said that the money used to buy the votes came from bribes provided bycontractors who were just awarded contracts to build national sport facilitiesin Bogor, West Java and dormitory building projects for the athletes contendingin the upcoming regional sport event of SEA Games scheduled in Jakarta andPalembang.

In thetestimony aired by local TV station MetroTV in the last two days, Nazaruddinsaid from his hideout that part of the money provided to buy the votes wasretrieved from the state budget funds.

Nazaruddinhas been declared a suspect by the country's anti-corruption commission forfixing all the project contracts to those contractors. He was suspected ofreceiving 13 percent of commission fee from total SEA Games athletes dormitoryproject that worth 200 billion rupiah (about 23 million U.S. dollars)

IndonesianPresident Susilo Bambang Yudhoyono, the Democrat party's patron figure, hassummoned Anas and several party's senior officials regarding Nazaruddinconfession on Wednesday.
Butnone of them was willing to disclose the content of the meeting with thepresident who secured two maximum presidency periods with landslide votes in2004 and 2009 elections.
Discourseon possible chairmanship replacement in the upcoming congress rife in nationalmedia as an effort to save the party's image before running in 2014 elections.
Theparty would no longer nominate President Susilo Bambang Yudhoyono as he had hismaximum two presidency terms. The party has yet to find the correct figure tobe nominated as its presidential candidate in the elections.
TheDemocrat party was initially established to usher Susilo Bambang Yudhoyono, aretired army general, to seize presidency.
Theparty gained massive votes in the last two elections, dominating the seats inthe parliament that assuring adequate backup to the president's policies inrunning the country.
Apolitical expert, Syamsuddin Haris, said earlier that the current high-profilecorruption scandal make the party risk losing significant votes in 2014election.
Hesaid that the corruption scandal has eroded the public's trust on PresidentYudhoyono's party that strongly voiced anti- corruption drive during theelection campaign.
Editor: Xiong Tong

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.”