Newsroom > Press Releases
press
The FKI Business & Investment Delegation to Indonesia:
the First-ever Engagement of the Korean Business Community with President Prabowo to Advance Cooperation
- Headed by Dong Bin Shin, chairman of LOTTE Corporation, the business and investment delegation comprised 24 senior-level top executives and CEOs of Korea’s leading companies
- The delegation attended a luncheon hosted by President Prabowo and affirmed their commitment to strategic cooperation
- The FKI jointly held the Korea-Indonesia Business Roundtable with APINDO (Employers’ Association of Indonesia)... Commitments made toward cooperation in downstream industry, new & renewable energy, infrastructure, and the digital economy
- Suggestions submitted through meetings with key economy-related ministers, including the Coordinating Minister for Economic Affairs and the Minister of Industry
The Korean business community steps forward to strengthen networking ties
with the new Indonesian administration of President Prabowo.
Dong Bin Shin, chairman of LOTTE Corporation, headed the large, senior-level private sector delegation to Jakarta.
The FKI business and investment delegation attended a courtesy luncheon hosted by President Prabowo Subianto at the Merdeka Presidential Palace on Monday, April 28. This meeting marks the first official exchange on the Korean government- and business community-level to be held with President Prabowo since his inauguration. It also carries particular significance, taking place at a time of growing urgency for strengthened bilateral cooperation. In his opening remarks, Dong Bin Shin, chairman of LOTTE Corporation and head of delegation stated, “The Korean business community seeks close cooperation with Indonesian companies in key fields that President Prabowo aims to foster—the downstream industry, new and renewable energy, infrastructure, and the digital economy. Chairman Shin also remarked, “LOTTE will contribute to advancing Indonesia’s downstream1 chemical product manufacturing capacity by establishing a large-scale petrochemical complex—through the largest FDI in Indonesian history, anticipated to create approximately 14,000 direct jobs.”
1) Downstream: An industry engaged in processing post- extraction and refined raw materials to create high value-added
final products or supplying consumers
The companies represented by the Korean business and investment delegation have already deployed investments totaling IDR 270 trillion (Approximately KRW 23 trillion) and are planning to follow up with additional investments in various fields including advanced manufacturing and mineral resources. New large-scale investments are being prepared by LOTTE Shopping in distribution; Hyundai Motor Group in the EV ecosystem; Hanwha General Insurance in finance; and KCC Glass Corporation in the glass industry. These investments are expected to contribute to enhancing Indonesia’s value-added industrial capacity. There are also additional investment plans by Chong Kun Dang (In pharmaceuticals); HD Hyundai XiteSolution (In machinery); SPC (In food products); and MegazoneCloud (In AI).
Prior to the meeting with President Prabowo, the FKI jointly hosted the Indonesia-Korea Business Roundtable (“BRT”) with the Employers’ Association of Indonesia (“APINDO”), at The Langham, Jakarta, on the morning of Monday, April 28.
In his opening remarks, Chairman Dong Bin Shin stated, “Indonesia, as ASEAN’s largest economy, is a key partner for Korean companies,” and that, “Korean firms could serve as strategic partners in helping Indonesia shift from a resource-based economy to a value-creating economy.” Stressing enhanced bilateral downstream industrial cooperation, Chairman Shin added that, “The combination of Indonesia’s key resources with Korean companies’ manufacturing technologies may contribute to driving forward Indonesia’s capacity in value-added industry.” He also cited successful cases of cooperation and value-chain integration spanning across nickel processing and battery cell & EV manufacturing facilities among Hyundai Motor Group, LX International, and EcoPro, noting their potential contribution to industrial advancement in Indonesia.
APINDO Chairwoman Shinta Kamdani remarked, “The Korean delegation’s plans to make new investments in various fields are highly encouraging. Going forward, APINDO and FKI will continue to seek developing resilient policy responses that safeguard regional economic stability through high-level exchanges.”
During the BRT, the representatives of Korean companies engaged in dialogue with Todotua Pasaribu, vice minister of Investment and Downstream Industries. The delegation highlighted that Korean direct investment in Indonesia surged by 54.3% yearon-year in 2023, culminating in a peak of USD 2.28 billion, and requested support for Korean companies operating in Indonesia to facilitate local corporate management. The delegation also discussed potential avenues for cooperation with Danantara, the Indonesian sovereign wealth fund launched in February 2025 and a vehicle for realizing President Prabowo’s economic vision, with plans to invest USD 20 billion (Approximately KRW 28.6 trillion) into national priority projects. The Korean delegation expressed its active commitment to participating in Indonesia’s government-led initiatives, including joint investments in infrastructure, energy, and battery industries which require substantial funding.
The FKI delegation held meetings with the leaders of key economy-related ministries, including the Coordinating Ministry for Economic Affairs and the Ministry of Industry on April 28-29. During these sessions, the delegation submitted proposals aimed at resolving operational bottlenecks and enhancing policy support for Korean companies with a local presence in Indonesia
While recognizing that rules of origin requirements have been eased under the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA), the delegation requested additional measures to address other non-tariff barriers, including mandatory halal certification requirements and restrictions on e-commerce sales. The delegation also expressed concern over the U.S. reciprocal tariff policy announced by President Trump on April 2, which would impose up to 32% tariffs on Indonesian goods. The delegation submitted requests for active diplomatic coordination and support from the Indonesian government to help Korean companies operating locally avoid being subjected to high tariffs. In addition, the need for establishing a stable electric grid and policy assurances for the industrial use of electric power were also emphasized and a request was submitted for the continued interest and support by the government.
Bong Man Kim, vice president of the International Affairs Division, stated, “The delegation has helped renew momentum for bilateral economic cooperation following President Prabowo’s inauguration. Also, this visit will serve as a foundation for establishing a practical-level platform for cooperation between the business communities of the two countries.” Vice President Kim added, “The FKI reaffirms our steadfast commitment to expanding bilateral trade and investment.”