$1.9 Billion Deal
South Korea and Indonesia signed five memorandums of understanding (MOUs) worth a total of US$1.9 billion in Jakarta on November 9.
The signing of the MOUs covering public transportation and infrastructure was attended by South Korean Minister of Land, Infrastructure & Transport Kim Hyun-mi, Indonesian Minister of Transportation Budi Karya Sumadi and Indonesian Minister of Public Works & Public Housing Basuki Hadimuljono.
According to the MOUs, the Korea Rail Network Authority is to be in charge of the second phase of Indonesia’s light rail transit (LRT) project for reducing traffic congestion and air pollution in Jakarta. In addition, the two countries are going to launch a water supply project in Karian while working more closely with each other for similar future projects and a successful completion of the hydroelectric power generation project in Bongka.
Furthermore, Hanwha Engineering & Construction is slated to participate in a US$230 million part of Indonesia’s public housing project. This project is based on Indonesian President Joko Widodo’s election pledge and is to build 1.87 million public houses. Regarding the first phase of the new city development project in Lido, POSCO Engineering & Construction and Indonesian MNC Group are going to work with each other.