September 11, 2018 / 10:16 AM / a year ago

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

Indonesian President Joko Widodo talks with South Korean President Moon Jae-in during their meeting at the Presidential Blue House in Seoul, South Korea, September 10, 2018. REUTERS/Kim Hong-Ji/Pool

(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 (229640.KS), Sae-A Trading, Taekwang Industrial Co Ltd (003240.KS), 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 (000720.KS), 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 (034020.KS), 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)

Reporting by Fanny Potkin in JAKARTA and Ju-Min Park in SEOUL

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