FKI Dispatches High-Level Economic Delegation to Indonesia on April 28-29
Korea-Indonesia Business Roundtable Held
Discussions on Cooperation with Minister of Investment and Sovereign Wealth Fund
The Federation of Korean Industries (FKI) dispatched a high-level economic delegation led by Shin Dongbin, Chairman of Lotte Group, to Jakarta, Indonesia, for a two-day visit starting April 28. This visit, the first since the inauguration of the new Prabowo administration, aims to strengthen the economic cooperation network between the two countries.
The delegation, headed by Chairman Shin Dongbin, consists of 24 senior executives from major Korean companies operating in Indonesia. The group includes Kim Changbum, Executive Vice Chairman of FKI; Kim Sanghyun, Vice Chairman of Lotte Shopping; Lee Jaekeun, Head of Division at KB Financial Group; Sung Kim, President of Hyundai Motor; Kim Seungjoo, President of SK Plasma; Chun Seongrae, Head of Division at POSCO Holdings; Song Hojun, CEO of Ecopro; Kim Youngjoo, CEO of Chong Kun Dang; Lee Heon, Executive Vice President of Samsung Electronics; and Heo Jinsu, President of SPC Group, among others.
On the morning of April 28, FKI co-hosted the "Korea-Indonesia Business Roundtable (BRT)" with the Indonesian Employers Association (APINDO) at the Langham Hotel in Jakarta.
In his opening remarks, Chairman Shin Dongbin stated, "Indonesia, the largest economy in ASEAN, is a key partner for Korean companies," and added, "Korean companies are strategic partners essential for Indonesia's transition from a resource-based economy to a value-creating economy."
He further suggested cooperation particularly in the downstream industry sector, emphasizing that combining Indonesia's major resources with Korean manufacturing technology can drive high value-added industrialization in Indonesia. He also introduced examples of collaboration, such as Hyundai Motor, LX International, and Ecopro working together to establish a value chain from nickel processing to battery cell and electric vehicle production facilities.
Shinta Kamdani, Chairwoman of APINDO, remarked, "It is very encouraging that this Korean economic delegation is planning new investments across various sectors," and proposed, "Let us continue to seek resilient policy responses that can secure economic stability in the region through high-level exchanges between APINDO and FKI."
During the BRT, Korean companies held discussions with Luhut Binsar Pandjaitan, Indonesia's Minister of Investment and CEO of Danantara.
The delegation highlighted that Korea's direct investment in Indonesia reached a record high of $2.28 billion in 2023, marking a 54.3% increase from the previous year, and requested government support to facilitate smooth business operations for Korean companies in Indonesia. They also discussed possible cooperation with Indonesia's sovereign wealth fund, Danantara.
Danantara plans to invest $20 billion (approximately 28.6 trillion won) in national core projects to realize President Prabowo's economic vision. The Korean delegation proposed active cooperation, including joint investments, in areas requiring large-scale capital such as infrastructure, energy, and batteries.
The FKI delegation met with ministers from key economic ministries, including the Coordinating Ministry for Economic Affairs and the Ministry of Industry, to convey local business challenges and suggestions for regulatory improvements.
The delegation pointed out various non-tariff barriers that persist despite the easing of rules of origin certification under the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA), such as mandatory halal certification and regulations on e-commerce sales, and requested improvements.
They also expressed concerns about the US government's decision under President Trump to impose tariffs of up to 32% on Indonesian imports, and requested active diplomatic coordination from the Indonesian government to ensure that Korean companies operating locally are not subject to high tariffs. Additionally, they emphasized the need for a stable power supply network and policy guarantees for industrial electricity use in Indonesia.
Kim Bongman, Head of FKI's International Division, stated, "Through this delegation, we have established new momentum for economic cooperation between the two countries following the launch of the Prabowo administration," and added, "We will build a practical platform to expand cooperation between APINDO and business leaders from both countries through this visit." He also said, "FKI will continue to make efforts to expand trade and investment between the two countries."
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