South Korean investment interest in Indonesia remains strong, as demonstrated by the official opening of Dongsung Chemical’s new polyurethane (PU) production facility in Karawang, West Java, in April 2025. The launch was officiated by Indonesia’s Minister of Investment and Head of the Investment Coordinating Board (BKPM), who highlighted the project as a reflection of Indonesia’s ongoing appeal to high-tech industries.
Located on an 82,000-square-meter site with 23,000 square meters of building space, the new facility is Dongsung Chemical’s largest production plant, exceeding the company’s manufacturing capacity in South Korea. The plant produces polyurethane (PU) products for a diverse range of industries, including automotive (seats, headrests, and interior coatings), footwear (soles and adhesives), home goods (mattresses, sofas, and waterproof coverings), as well as manufacturing and construction (sealants, adhesives, and surface protectors).
The Chairman of Dongsung Chemical emphasized that the new plant represents a key component of the company’s long-term global strategy rather than simply an increase in production capacity.
In the first quarter of 2025, South Korea was Indonesia’s seventh-largest source of foreign direct investment (FDI), contributing USD 683.29 million across multiple sectors. Between 2020 and 2024, South Korea’s total foreign direct investment (FDI) in Indonesia totaled USD 11.3 billion.
The Indonesian Minister of Investment stated that, under the current President’s leadership, Indonesia continues to welcome investment and is actively pursuing strategic partnerships that support the country’s goals of downstream industrialization and creating quality employment opportunities.
(Source: Indonesia Business Post)
