Franky Sibarani, center, head of the Investment Coordinating Board (BKPM). (Antara Photo/Puspa Perwitasari)

BKPM Links Up With Three South Korean Lenders


OCTOBER 18, 2015

Jakarta. Indonesia's Investment Coordinating Board, or BKPM, has signed a memorandum of understanding with three South Korean banks in its bid to court more investment from overseas businesses into Southeast Asia's largest economy.

In a recent statement, BKPM chief Franky Sibarani said that the government agency seeks to partner with KEB Hana Bank, Woori Bank and Shinhan Bank in efforts of increasing trade and investment relations between Indonesia and South Korea.

Both KEB Hana Bank and Woori Bank have established local presence in Indonesia as the former acquired small-sized lender back in 2007 and the latter bought a stake at a local bank last year. Meanwhile, Shinhan Bank is slated to close its acquisition of two local lenders by the end of the year.

Franky also sealed a partnership with South Korea's business lobby group the Federation of Korean Industries, whose members include South Korean giants like Samsung Electronics, Hyundai Motor and Lotte Corporation, according to a statement.

"These partnerships will expand our network with potential investors. On top of the that, we also hope to support investors from Indonesia when they're planning to invest overseas," he said.

Indra Darmawan, director of international business partnerships, added that BKPM hopes to orchestrate several promotional efforts together with the business lobby group and the three big banks, such as investment forums.

South Korean businesses were the fourth-largest source of investment for Indonesia in the first half of the year, placing approximately $800 million in investments in Indonesia between January and June, or 5.7 percent of the country's total realized investment, data from BKPM reported.

In total, South Korea has booked 4,119 projects in Indonesia worth about $7.6 billion.