50 years of bilateral ties, RI and Korea increase collaboration in diverse fields – Economy – The Jakarta Post

South Korea Ranks Seventh in Foreign Direct Investment in Indonesia

In 2023, South Korea ranked seventh in terms of foreign direct investment (FDI) in Indonesia, with a recorded investment of US$2.5 billion. This marked an increase of more than $200 million (8.7 percent) compared to the previous year. The bilateral trade between South Korea and Indonesia also reached $20.8 billion in 2023.

Collaboration for Future Development

In a meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and South Korea’s Trade, Industry, and Energy Minister Ahn Duk Geun in Seoul on May 22, Minister Hartarto expressed confidence in the future increase and development of collaboration between the two nations. He emphasized the need to strengthen and deepen collaboration in the areas of industry, trade, and energy transition between Indonesia and Korea.

Agreements Reached at Joint Committee on Economic Cooperation Meeting

At the second Joint Committee on Economic Cooperation (JCEC) meeting held in Seoul in July 2023, several agreements were reached between South Korea and Indonesia. These agreements included collaboration on the development of nickel derivatives for electric vehicle (EV) battery production, market access for Indonesian fruit in South Korea, the expansion of Lotte’s petrochemical plant, the construction of Krakatau Steel’s steel cluster – Posco, market access for Indonesian micro, small, and medium enterprises (MSMEs) through South Korea’s e-platform, and collaboration on energy transition and mitigation of global climate change.

Recognition and Call for Further Collaboration

Minister Ahn congratulated Minister Hartarto on being awarded a Doctor Honoris Causa degree by Gyeongsang National University (GNU) and expressed hope that Minister Hartarto would play a more significant role in promoting collaboration with Korea.

Implementation of Agreed Collaboration

Minister Hartarto highlighted the ongoing collaborative work between South Korea and Indonesia, including the expansion of Lotte’s petrochemical plant and the construction of the steel cluster at Krakatau Steel. However, he emphasized the need for more efforts to drive the implementation of agreed collaboration.

Collaboration on EV Ecosystem and Nuclear Power Plant Development

The two ministers also discussed collaboration on the development of an EV ecosystem through investments made by Hyundai and LG Energy Solution in Indonesia. Minister Hartarto expressed the hope for deeper collaboration in the EV ecosystem and requested Korea’s assistance in negotiating with the United States for market access to products produced collaboratively between LG and Hyundai. Additionally, South Korea disclosed a collaboration opportunity for the development of a nuclear power plant using small modular reactor (SMR) technology, which has a lower carbon footprint than conventional reactors.

Invitation to Joint Committee on Economic Cooperation Meeting

Minister Hartarto extended an invitation to Minister Ahn to join the third JCEC meeting in Jakarta in July, as Indonesia will be hosting the event this year.

This article was published in collaboration with the Coordinating Ministry for Economic Affairs Republic of Indonesia.

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