A recent visit of State-Owned Enterprises Minister Erick Thohir and Investment Coordinating Board (BKPM) head Bahlil Lahadalia to Seoul resulted in at least three business deals, Foreign Minister Retno LP Marsudi said on Wednesday.

South Korean glass manufacturer KC Glass Co. Ltd. is set to invest Rp 5.1 trillion (US$342.9 million) in a deal that can help employ up to 1,300 Indonesian workers.

Meanwhile, garment company PT Sejin Fashion Indonesia, a subsidiary of South Korean footwear manufacturer Parkland Co., Ltd., plans to relocate its production base from China to Indonesia. With an investment of Rp 1.2 trillion, it could provide 4,000 new jobs for Indonesians.

Sejin plans to relocate its factory from Dalian city in China to Pati regency in Central Java.

The company’s total investment value is estimated at $35 million.

The company is expecting support from the Indonesian government in the form of a survey on non-new capital goods (BMTB) machines to be relocated from factories in China, the establishment of an industrial zone, a permit on bringing in expert foreign workers during the pandemic and eligibility for a tax allowance scheme.

Parkland CEO Myeong-gyu Park expressed optimism that Sejin would thrive in Indonesia, just as Parkland did for the past 15 years.

The Busan-based company established its local company, PT Parkland World Indonesia, in 2005 and has since produced footwear for brands such as Adidas, New Balance and Reebok.

It has factories in Serang in Banten and Jepara, Rembang and Pati in Central Java.

South Korea’s largest chemical company, LG Chem Ltd., is set to develop an electric car battery plant and bring a “huge amount” of investment into the archipelago, Retno said, though the exact figure was still being calculated.

As Indonesia faces an economic downturn because of the COVID-19 crisis, a wave of foreign companies has confirmed plans to relocate their production facilities to the country, mostly from China, which is predicted to bring $850 million in investments and employ up to Indonesian 30,000 workers.

In the health sector, Indonesia and South Korea are currently working together through pharmaceutical companies Kalbe Farma and Genexine to develop a COVID-19 vaccine.

“Since the beginning [of the pandemic], South Korea has been an important partner for Indonesia in providing medical supplies needed to handle COVID-19, including personal protective equipment,” Retno said.

Amid global travel restrictions in place due to the novel coronavirus, Indonesia and South Korea arranged a travel corridor for essential business and official visits (TCA), effective on Aug. 17.

During a courtesy visit to Jakarta on Monday, South Korean Deputy Foreign Minister for Political Affairs Kim Gunn expressed his appreciation for Indonesia’s consistency in promoting multilateralism and its commitment to maintaining regional stability in ASEAN, Retno said.

“[Kim] took a good look at the message conveyed in the statement of ASEAN foreign ministers on Aug. 8 regarding ASEAN’s commitment to maintaining regional peace, stability and prosperity,” Retno said.

In addition, Kim delivered an invitation from South Korean Foreign Minister Kang Kyung-wha to conduct a Joint Ministerial Commission in Seoul at the end of this year and to participate in the United Nations Peacekeeping Operations Ministerial Meeting next year, she added. (syk)