South Korean companies will increase their investment in Indonesia by $1.7 billion, Indonesian economic minister Airlangga Hartarto said on Monday after attending a meeting between a South Korean business association and President Prabowo Subianto.
The planned increase is equal to more than 10% of the $15.4 billion that Airlangga said South Korean firms had already invested in Southeast Asia's largest economy, said Airlangga.
Prabowo's office said he met with more than a dozen South Korean companies that have invested in Indonesia, including holding company Lotte Corporation, steel firm POSCO Holdings KRX:005490, glass producer KCC Glass Corporation KRX:344820, and Hyundai Motor Group.
POSCO and KCC Glass were among the firms that planned new investments, Airlangga said, without providing further details.
Airlangga said Lotte Chemical Corp's KRX:011170 $3.9 billion large-scale petrochemical plant in Indonesia was expected to start operating by September or October this year.
Indonesia is also in talks with South Korea's Poongsan Corporation KRX:103140 to buy ammunition, he added.
KCC Glass, POSCO, Lotte, and Poongsan did not immediately respond to request for comments.