TEMPO.CO, Jakarta-Lotte Group has expressed its interest to increase investment in Indonesia worth US$4 billion, Chairman of the Investment Coordinating Board (BKPM) Franky Sibarani said yesterday, May 16, 2016, in Seoul, South Korea.
“I believe it would be done before August. Technical issues will be facilitated to soon realize it or to start the development,” Franky said after accompanying President Joko Widodo in a business meeting with Lotte Group executives.
According to Franky, Lotte Group plans to expand investment of Lotte Chemical, a company that operates in pharmaceutical industry. Meanwhile, Lotte Mart will expand retail business in five major cities in Indonesia.
Franky admitted that Lotte Mart’s business expansion to five major cities in Indonesia will take time. “It has been conveyed to the BKPM. One of their main concerns is local permit,” Franky said.
In addition, Chairman of the Economic Creative Agency (Bekraf) Triawan Munaf said Lotte Group plans to invest in theatre and amusement park businesses in Indonesia. “They have also shown interest in credit cards manufacturing in Indonesia,” Triawan said.
In the mean time, Foreign Minister Retno Marsudi said Lotte Mart wishes to increase fresh fruit imports from Indonesia, particularly bananas and mangoes.
However, South Korea’s import duty that is as high as 200 percent may become a hindrance. “So far they have imported US$9 million [in fruits] and will be increased to US$12 million,” Retno said.
In a bilateral meeting with the President of the Republic of Korea Park Geun-hye, President Joko Widodo hoped that the Korean government would facilitate fruit imports from Indonesia.
ANTARA