Dae-min Jeong, Gounee Yang

Global Economic News

MAJOR South Korean firms are stepping up investments in Indonesia, a large natural resource exporter and the world’s fourth-largest populous country.

South Korea’s GS Caltex and POSCO International agreed to establish a joint venture April 29 to build a palm oil-based biodiesel plant in Indonesia.

The two firms also agreed to establish an eco-friendly bio value chain encompassing raw material refining, bio chemical product manufacturing and waste oil recovery in Indonesia.

South Korea’s LX International, Samsung C&T and other trading firms are also operating palm oil businesses in Indonesia.

The U.S. Department of Agriculture predicted that the global palm oil production will reach 77 million tons this year, and 45.5 million tons, or 59.1% of the total, are expected to be produced in Indonesia.

Indonesia also holds the world’s largest nickel reserves. According to the Indonesia Investment Coordination Commission, Indonesia’s nickel reserves are expected to hit 21 million tons.

As nickel is a core material for electric vehicle (EV) batteries, South Korea’s LG Energy Solution, the second-largest EV battery maker in the world, and China’s CATL, the world’s largest battery maker, have all made investment in Indonesia.