South Korean steel giant Posco plans to nearly double its Indonesia investments to $11 billion over five years, the country’s chief economics minister said Friday.
The world’s fourth-largest steelmaker currently has $6 billion invested in Indonesia, which is seeking overseas money to build infrastructure it needs to maintain strong economic growth, which hit 6.5 percent last year.
“Posco will increase its commitment up to $11 billion for further development in cold steel, energy and smelters,” Hatta Rajasa told reporters.
Posco has also agreed to invest in a 600-Megawatt coal-fired power plant in southern Sumatra.
The firm was also interested in a nickel refinery, biofuel, diesel fuel and information technology in Southeast Asia’s most-populous nation, Rajasa said according to state-run news agency Antara.
Once approved, the projects will take five years to build, Rajasa added.
Indonesia is heavily reliant on foreign investment to improve technology and infrastructure as its economy booms. The country aims to make the world’s top 10 economies by 2025.