According to Tempo, LG, South Korea’s electronics giant, looks set to relocate their Chinese factory, as well as their research and development arm, to Indonesia. Reporting claims that Bahlil Lahadalia, conveyed the news following his meeting with LG Corporation CEO Brian Kwon, along with President Joko Widodo or Jokowi in South Korea recently.
“The relocation plan is good news for Indonesia. The Investment Ministry will facilitate [the process starting] from the permit until the realization of the investment,” said the minister in a written statement on Saturday, July 30.
Bahlil said that LG iterated its plan to invest in Indonesia. Besides the factory relocation, the South Korean company also intended to invest in the development of Indonesian new capital or IKN Nusantara. In addition, LG will build an EV battery industry that is integrated from upstream to downstream.
Brian Kwon views that the Indonesian government is serious about developing renewable energy, which can bring great progress to the country. Therefore, he said, LG Corporation is committed to realizing the integrated EV battery industry in Indonesia with a grand package development plan worth USD 9.8-billion.
LG also eyes to help develop the smart city plan in IKN. Brian hopes the grand package investment will run as planned. However, he sees that there needs to be a development in the human resource quality to balance the technology transfer from South Korea.
During the President’s working visit to Seoul, South Korea, Jokowi met with ten CEOs of South Korean companies. The ten companies were considered to be interested in investing in Indonesia. The meeting recorded a USD 6.72-billion investment commitment.
The Investment Ministry data showed that from 2017 until the first semester of 2022, South Korea ranks fifth as the largest contributor to foreign investment in Indonesia, with a total realized investment of USD 9.08-billion.