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Indonesia, South Korea Agree to Work Together on Projects Worth $50b

 A two-day meeting in Jeju, South Korea between delegations from Indonesia and the host country last week yielded in agreement for cooperation in eight large-scale projects worth $50 billion, Indonesian Coordinating Minister for the Economy Hatta Rajasa said. 

Hatta led the Indonesian delegation at the meeting last week, which resulted in the so-called Jeju Initiative. 

Projects included the Sunda Strait bridge, worth $10 billion, a compressed-natural gas project, the Bengkulu-Muara Enim railroad, the Ciliwung River restoration, and an agriculture-based industry cluster. 

Other projects are the Batam-Bintan bridge, a coal-fueled power plant in South Sumatra, and an office building for Daewoo Shipbuilding and Marine Engineering. 

“These are very important in strengthening relations between the two countries,” Hatta said on Friday. 

The projects are part of the Indonesian Master Plan for the Acceleration and Expansion of Economic Development (MP3EI), a Rp 4,000 trillion ($420 billion) project that focuses on infrastructure development like the construction of roads, airports and seaports. The plan is aimed at making Indonesia’s economy one of the 10 largest in the world by 2025. 

Hatta said the agreement is important in helping to reach the targeted bilateral trade volume of $100 billion by 2020 and to boost Korean investment in Indonesia. 

Total trade between the two countries last year reached $29.4 billion, up from $20.3 billion in 2010. 

In the January-April period this year, trade between South Korea and Indonesia was already at $9.8 billion, up 13 percent from a year earlier. 

Two large South Korean companies, Pohang Iron and Steel Company, and Honam Petrochemical Corporation are planning to build plants in Indonesia to help increase steel production and petrochemical output. 

An increase in middle-income households, economic growth and natural resources attract investors to Indonesia.

Source: jakarta Globe

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