Indonesia wants more investment from Korean financial firms
H.E. Gandi Sulistiyanto, Indonesian ambassador to Korea speaks at Korea Times Global Business Club at Korea Press Center in Seoul, Thursday. Photo by Choi Won-suk
By Lee Kyung-min
The Indonesian government has and will continue to support the sustained robust performances of Korean firms looking to enter the Southeast Asian country, Indonesia's ambassador to Korea said Thursday.
“Korean financial firms in Indonesia are improving a lot despite ongoing conflict, generating promising performances,” said Gandi Sulistiyanto, ambassador of Indonesia to Korea. He was the key speaker at The Korea Times Global Business Club held at the Press Center, Thursday. Dignitaries and business executives also took part in the event.
Thursday's event was the first in a series of business forums organized by The Korea Times. Upcoming forums scheduled throughout the year will offer insights into key issues in Japan, China and Saudi Arabia.
Officials from the Embassy of Indonesia in Seoul attend The Korea Times Global Business Club at the Press Center, Seoul, Thursday. Photo by Choi Won-suk
Among measures to facilitate the growth of Indonesia's financial industry is a growth roadmap (2023-27) seeking to foster sustainable financing, bolster investor protection and strengthen financial sector credibility.
“We are making efforts to provide stable market opportunities for foreign companies aiming to enter the Indonesian market. We are trying to make Korean financial firms choose Indonesia as their investment destination.”
He took particular note of six Korean commercial lenders, including Hana, Shinhan, KB Kookmin and Woori, which are operating in Indonesia as well as 31 other Korean financial companies.
Mirae Asset, he added, has been the biggest market player in Indonesia's financial sector. Others, according to him, are expressing greater interest too, including Korea Investment Holdings (KIH).
Members of the audience listen to a speech delivered by H.E. Gandi Sulistiyanto, Indonesian ambassador to Korea, during The Korea Times Global Business Club at the Press Center in Seoul, Thursday. Photo by Choi Won-suk
Banking, financing, securities and asset management are among the financial services vital to the growth of the capital market in Indonesia, the ambassador stressed.
“Indonesia has always supported the globalization of the financial industry. Our embassy and I will continue to develop support measures to advance economic growth and strengthen our financial market.”
The Indonesian diplomat said he and his team had a productive meeting with Financial Supervisory Services (FSS) Governor Lee Bok-hyun.
Among the items discussed were ways to improve regulations to ease and pave the way for Korean financial institutions to expand their presence in Indonesia.
“A few days ago, Governor Lee and I discussed the investment and financial climate in Indonesia and the importance of collaborating on how to make Indonesia the primary investment destination for Korean financial companies,” he added.
Members of the audience listen to a speech delivered by H.E. Gandi Sulistiyanto, Indonesian ambassador to Korea, during The Korea Times Global Business Club at the Press Center in Seoul, Thursday. Photo by Choi Won-suk
The Indonesian ambassador also had a one-on-one with Bank of Korea Governor Rhee Chang-yong and discussed the possibility of a won-rupiah currency settlement system.
“We sometimes find hurdles if we deal with U.S. dollars instead of local currencies. I think we will have an answer soon,” the ambassador said.
Indonesia also looks forward to the possibility of mutual and future-oriented cooperation in the manufacturing industry, he added
LG and Hyundai are among the top Korean manufacturers participating in a project to relocate Indonesia's administrative capital to East Kalimantan.
“The two countries have enjoyed mutually beneficial, flourishing relations over the past years. In business, Indonesia can provide key manufacturing resources, including raw materials from abundant natural resources. Three specific sectors of further closer cooperation include the downstreaming of manufacturing, minerals and fisheries sectors. Korean firms can provide technologies to further the growth of Indonesia.”
Indonesia has spearheaded targeted intensive promotional activities. But the authorities are aware that conducting intensive promotional activities apart from attracting foreign investment must be pursued with a combination of good policies, assistance and services.
“Our job creation law, for example, can and will provide a simple transparent process. Our investor-friendly policies will also provide comprehensive incentive packages for investors. The establishment of the investment acceleration task force team has demonstrated that the Indonesian government is fully committed to investments with a very strategic value to reduce difficulties in realizing investments in our country.”