The Indonesia Investment Board, in collaboration with the Indonesian Embassy, held a reception last week to woo Korean investors in infrastructure, manufacturing, maritime industries and tourism, while explaining the country’s latest regulatory changes.

Franky Sibarani, the chairman of the board, gave a presentation on simplified investment license processing and new opportunities at the gala dinner “New Government and New Hope: Investment Plan 2015-19” at Conrad Hotel in Seoul last Thursday.

Indonesian Ambassador John Prasetio presented the economic policy of Indonesian President Joko Widodo, better known as Jokowi, who has adopted a fundamentally different approach from his predecessors.

“Rather than having a ‘thousand friends,’ Jokowi wants to develop growth-oriented alliances with selected countries,” Prasetio told a group of top executives from Korean companies. “The Indonesia-Korea alliance is at the heart of creating our common prosperity.”

Indonesia, which has 255 million people and the world’s 16th-largest economy, is welcoming foreign investment by opening its doors to globalization and resuming free trade agreements that had been suspended over the last couple of years, Prasetio stressed. 


The five-year development plan aims to build growth centers, power plants and marine infrastructure to boost inter-island connectivity and industrial productivity.

The investment board has streamlined the investment license process through the National One Stop Service system, which integrates procedures at national and local levels. It offers tax holidays and allowances, as well as import duty facilities.

Indonesia is the world’s leading exporter of palm oil and tin, the second-largest producer of cocoa and rubber, and fourth-largest coal producer. It also produces large quantities of tin, nickel, coal, natural gas, bauxite, copper and gold.

Indonesia’s annual gross domestic product exceeds $1 trillion, and the country has a young population with a median age of 29.

According to the McKinsey Global Institute, the country’s middle class is expected to grow by 90 million by 2030, opening up $1.8 trillion in market opportunities.

Korea is the fourth-largest investor in Indonesia, with the last five years’ investment reaching $7.4 billion, or 6 percent of the country’s total foreign investment.

As 80 percent of Korean investment is on Java Island, the board is encouraging Korean firms to diversify their industries and invest outside of Java, particularly in eastern Indonesia.

By Joel Lee (joel@heraldcorp.com)