Image: Reuters Berita 24 English - Indonesia's Krakatau Steel and South Korea's POSCO Holdings said Thursday that they will invest ...
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| Image: Reuters |
Berita 24 English - Indonesia's Krakatau Steel and South Korea's POSCO Holdings said Thursday that they will invest $3.5 billion to increase their production capacity in Indonesia.
Under the agreement, KRAKATAU POSCO will be able to make upstream and downstream products at a rate of 10 million tonnes per year, Krakatau said in a statement.
The Indonesian Investment Ministry said in a separate statement about the deal that the expansion will begin next year and will include making steel for electric vehicles (EVs).
At the moment, KRAKATAU POSCO can make 3 million tonnes.
In the statement, Krakatau Steel CEO Silmy Karim said, "PT KRAKATAU POSCO will be the largest integrated steel company in Southeast Asia."
The deal was made in Seoul, which was the last stop on Indonesian President Joko Widodo's trip, which also took him to China and Japan.
This week, Indonesia also said that companies like Toyota Motor Corp and Sojitz Corp from Japan had promised to invest.
The Investment Ministry says that since 2010, KRAKATAU POSCO has put $3.7 billion into making steel in Indonesia.
POSCO is also working on a $9.8 billion project to set up a supply chain for electric vehicles (EVs) in Indonesia so that the country's rich nickel reserves can be used. LG Energy Solution, another South Korean company, is in charge of this project (LGES).
The ministry said that the new deal will also help Indonesia's $32 billion plan to move its capital from Jakarta to a new city on Borneo called Nusantara.
