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Indonesia, South Korean firms agree to pursue $6.2 billion worth of deals

Published 09/11/2018, 06:14 AM
Updated 09/11/2018, 06:20 AM
© Reuters.  Indonesia, South Korean firms agree to pursue $6.2 billion worth of deals

(Reuters) - Indonesian and South Korean companies agreed to pursue $6.2 billion worth of deals at a bilateral business forum in Seoul attended by Indonesian President Joko Widodo, authorities in Jakarta announced on Tuesday.

Indonesia's Investment Coordinating Board (BKPM) said in a statement that 15 memorandums of understanding (MOU) and six investment commitments were signed on Monday, including some announced previously.

BKPM said South Korean firms Parkland, LS Cable & System Asia Ltd (KS:229640), Sae-A Trading, Taekwang Industrial Co Ltd (KS:003240), World Power Tech and InterVet confirmed investment commitments totalling $446 million.

The MOUs also involved energy deals aimed at easing surging power demand in Indonesia, BKPM said.

Hyundai Engineering & Construction Co Ltd (KS:000720), which has been working on a $470 million hydro-power plant in Indonesia, signed an MOU to promote cooperation with a South Korean power utility and an Indonesian firm, a Hyundai official said separately.

Other MOUs involved Doosan Heavy Industries & Construction Co Ltd (KS:034020), which has said it would build two coal-fired power plants worth $1.68 billion in Indonesia.

Korea Midland Power Co Ltd, POSCO Engineering & Construction Co Ltd and Hyundai Engineering Co Ltd also announced an MOU with Indonesia's PT Sulindo Putra Timur to build a 50 MW hydro-power plant in Indonesia for $300 million, BKPM said.

Widodo on Monday told reporters he was aiming for bilateral trade between the two countries to reach US$30 billion by 2022.

($1 = 14,852.0000 rupiah)

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