LG Corporation Wants To Invest In IKN Nusantara

President Jokowi's meeting with 10 CEOs and leaders of large South Korean companies in Seoul, South Korea, Thursday (28/7/2022). (Between)

JAKARTA - The South Korean conglomerate LG Corporation has expressed its commitment to invest in Indonesia, including through factory relocation from China, development of the electric battery industry and plans to be included in the construction of the National Capital City (IKN) of the Archipelago.

This was conveyed by the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia who accompanied President Joko Widodo in a meeting with the Vice Chairman/CEO of LG Corporation Brian Kwon on the sidelines of his working visit to Seoul, South Korea, last Thursday (28/7). .

"I accompanied the President to receive LG specifically, where LG besides building an integrated battery EV (Electronic Vehicle) from upstream to downstream, later LG Electronics will also relocate from China to Indonesia, including R&D (Research & Development)- it," Bahlil said in a written statement in Jakarta as reported by Antara, Saturday.

Bahlil also warmly welcomes LG Corporation's investment commitment, especially regarding the factory relocation because it is positive news for Indonesia. The Ministry of Investment/BKPM will ensure facilitation from the licensing stage to the realization of the investment plan.

Meanwhile, Vice Chairman/CEO of LG Corporation Brian Kwon said that the Indonesian government is very serious about developing renewable energy in Indonesia, which will bring great progress to Indonesia.

Brian explained that LG Corporation is currently committed to realizing investment in the integrated electric battery industry in Indonesia with a grand package investment plan of US$9.8 billion. LG also plans to contribute to the concept of smart city development in IKN.

"We expect the Indonesian government's special attention so that the grand package investment can go according to plan. In addition, we will also relocate our LG Electronics R&D center in China to Indonesia," he said.

Furthermore, Brian conveyed the need for the development of human resources (HR) in Indonesia in order to balance the entry of technology transfer from South Korea to Indonesia.

Previously, during a working visit to Seoul, South Korea, President Joko Widodo met directly with 10 leaders of South Korean companies who have new investment interests or plan to expand their investments to Indonesia.

During the meeting, it was noted that there was an investment commitment of 6.72 billion US dollars or equivalent to Rp. 100.69 trillion.

Based on data from the Ministry of Investment / BKPM throughout 2017 until the first semester of 2022, South Korea was recorded as being ranked fifth in the list of countries that invested the most in Indonesia with a total realized investment of 9.08 billion US dollars.