South Korean investors’ interest in Indonesia has apparently remained strong, marked by the official opening of Dongsung Chemical’s new polyurethane (PU) production facility in Karawang, West Java, on Wednesday, April 30, 2025.
Minister of Investment and Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani, officiated the launch, emphasizing that this investment reflects Indonesia’s continued attractiveness as a destination for high-tech industries.
“This facility is proof that Indonesia is not only a desirable investment destination, but also a trusted hub for high-tech manufacturing and global exports,” Rosan said as quoted in a statement on Friday, May 2, 2025.
“This investment will create jobs and strengthen Indonesia’s position in the global supply chain,” he added.
Built on an 82,000-square-meter site with 23,000 square meters of building space, the plant is Dongsung Chemical’s largest production facility — surpassing even its domestic capacity in South Korea. Its PU products serve a wide range of sectors including automotive (seats, headrests, interior coatings), footwear (soles and adhesives), home goods (mattresses, sofas, waterproof coverings), and manufacturing and construction (sealants, adhesives, surface protectors).
Chairman of Dongsung Chemical, Baek Jeong-ho, said that the plant is not merely an expansion of capacity, but a cornerstone in the company’s long-term global strategy.
“Our new facility in Indonesia is the best PU system production base in Southeast Asia and a strategic global hub that will serve markets across Asia, Latin America, and Europe,” he said.
In the first quarter of 2025, South Korea ranked seventh among Indonesia’s largest foreign direct investors, with a total investment of US$683.29 million across various sectors. Between 2020 and 2024, South Korea’s total FDI in Indonesia reached US$11.3 billion.
Rosan anoted that under President Prabowo Subianto’s direction, Indonesia remains open for business and is actively seeking strategic partnerships, especially those aligned with the national goals of downstream industrialization and quality job creation.