President Yoon Suk-yeol strongly emphasizes:
President Yoon Suk-yeol praised Indonesia as a key partner country for Korea as well as for the ASEAN-Korea Solidarity Initiative and the Indo-Pacific Strategy for many reasons, especially in the fact that Indonesia is home to more than 2,000 Korean business companies.
Then said President Yoon, “Indonesia is the largest economy among the ASEAN member countries and the country also has abundant key mineral resources materials that Korea does not have.”
Yoon then went on to say that Indonesia is a leading member of the ASEAN and a key partner of Korea in responding to the global agenda.
President Yoon attended the Indonesia-Korea Business Roundtable, evaluated achievements of Indonesia-Korea economic cooperation, and presented future cooperation directions. Then he emphasized the need for increased cooperation also in the high-tech industries and key mineral supply chains.
Speaking at a round-table conference between the two leaders in Jakarta, Indonesia on Sept. 7, 2023, Yoon also proposed a joint response to global agenda and future generation exchange and solidarity program.
More than 40 business leaders from Korea and Indonesia attended the meeting and signed a total of 16 MOUs and other agreements.
President Yunin Jakarta participating in the ASEAN Summit there, attended the Korea-Indonesia Business Roundtable (BRT) on the afternoon of that day to assess the achievements of bilateral economic cooperation and proposed a strategy to advance the partnership for the next 50 years.
President Yoon praised the Republic of Indonesia as a key partner country for the ASEAN-Korea Solidarity Initiative and the Indo-Pacific Strategy for many reasons, including, especially, the fact that Indonesia is home to more than 2,000 Korean business companies.
President Yoon also emphasized that Indonesia is the largest economy among the ASEAN member countries that she has abundant key minerals.
Yoon called on the business leaders of the two countries for active cooperation between them who were leading in high-tech industries such as electric vehicles and batteries.
Yoon said that Indonesia is a leading member of the ASEAN and a key partner of Korea also in responding to the global agenda.
In particular, as Korea and Indonesia are boldly pursuing carbon neutrality, Yoon said, “We expect increased cooperation in the field of nuclear power plants, such as SMRs, to secure a stable energy supply base while responding to the climate crisis and environmental issues.”
Yoon also expressed hopes that exchanges between the future generations and solidarity of the two countries will be the foundation for sustainable cooperation and development between the two countries and peoples.
Yoon said, “I hope that exchanges will become more active in various fields between the two friendliest countries with the passage of time.”
Participating in the BRT meeting on that day, among others, were Chairman Chung Eui-sun of the Hyundai Business Group, Chairman Koo Kwang-mo of the LG Business Group, Chairman Shin Dong-bin of the Lotte Business Group, Chairman Koo Ja-eun of the LS Business Group, leaders of the 17 other leading business groups of Korea.
Most importantly, the meeting was attended especially by Indonesian Senate President Alshad Rasjid together with Minister of Maritime Affairs and Investment Coordination Ruhut Panjaitan and Health Minister Budi Sadiqin.
On that day, a total of 16 MOUs and agreements were signed on the BRT instrument in the fields of key minerals, nuclear power, new city construction, health, power, etc.
The Korean government in cooperation with the government of Indonesia plans to actively support the MOUs to create concrete achievements and results at an early stage.
The principal participants in the meeting from the Korean side were as follows:
Park Jin, Minister of Foreign Affairs
Ahn Deok-geun, Head of Trade Negotiation Division, MOTIE
Lee In-sil, Director of the Korean Intellectual Property Office
Chung Eui-sun, Chairman, Hyundai Motor Company
Koo Kwang-mo, Chairman of LG
Shin Dong-bin, Chairman of Lotte
Koo Ja-eun, Chairman of LS
Tae-moon Noh, President, Samsung Electronics
Park Sang-gyu, President, SK
Choi Yoon-beom, Chairman of KCC
Kim Hyung-kook, President, GS Caltex
Ryu Gyeongsun, CEO of Kakao Mobility
Yeon-in Jung, President, Doosan Energy
Chunsung Yoon, CEO of LX International
Choi Chul-gon CEO of HD Hyundai Construction Equipment
Kang Koo-young, President, Korea Aerospace Industries
Junho Choi, President of Fashion Group Hyungji Gastelbajak
Dr. Seung-hoon Sun, Medical Director of Sun Medical Center
Hyo-Jin Lee Vice President of Daelim Trading
Moon Chang-seop Chairman of Samdeok Trading
Kim Sung-soo Chairman of Zen Korea
Woo Tae-hee, Executive Vice Chairman of KOCHAM
News media in Indonesia very favorably cover the win-win cooperation between the business companies of Korea and Indonesia. Here is one example:
Many Korean companies are making good money in the Republic of Indonesia and she is one of the best investment-target countries in the world. According to a report published by Jakarta Globe on Nov. 30, 2023, the Government of Indonesia is trying to attract many Korean investors into the country by promising business profitability.
According to the Indonesian news publication, the Indonesian government data show that South Korea became Indonesia’s seventh-largest foreign investor in 2022.
Foreign direct investment (FDI) from South Korea totaled US$2.3 billion that year and the Korean investment amounted to almost US$2 billion in the first 9 months of 2023, which occupies the 7th place only behind Malaysia (US$2.4 billion). The Korean money went to 5,215 projects in January-September, according to Jakarta Globe.
Korea’s massive FDI took center stage in a forum commemorating the 50th anniversary of Indonesia-Korea diplomatic ties. The attending Chief Economic Affairs Minister Airlangga Hartarto also took the opportunity to promote Indonesia as an investment destination.
“I can say that the South Korean companies, including POSCO, are doing great here, and they are making a profit,” Jakarta Glove quoted Airlangga as telling the Korea-Indonesia Economic Cooperation Forum in Jakarta.
POSCO established a joint venture with its Indonesian counterpart Krakatau Steel in 2010. The Krakatau-POSCO joint venture is seeking to boost its annual production capacity to 10 million tons. According to Investor Daily, Krakatau POSCO posted a US$415 million profit and a US$2.35 billion revenue in 2021.
Airlangga was quoted as saying: “And take a look at Daewoo Engineering & Construction which is taking part in more projects. This shows how we can share the gains and the economic growth.”
Korean Ministry of Foreign Affairs view of bilateral relations:
The Republic of Indonesia is considered to form the backbone of Southeast Asia. Indonesia has a population of nearly 300 million people, a youthful population with a median age of 29, key mineral resources such as nickel, cobalt, bauxite, and coal, and a maritime nation of more than 18,000 islands.
Indonesia may seem far away from Korea at first glance, but Indonesia is a country with which Korea has a long history of close cooperation, having weathered the storms of history together.
Korea and Indonesia share a lot in common, including their hard-fought independence, solidarity of the people, and the shared spirit of cooperation between the two friendly countries.
Indonesia, despite being a non-member of the United Nations during the Korean War, nonetheless, provided wartime materiel and post-war reconstruction assistance, and lent a helping hand when Korea suffered during the ‘oil shock’ period.
Korea's first overseas investment in history was in 1968, when she entered the Indonesian island of Kalimantan, Borneo, for the timber business of Nambang Development. And the raw materials secured from Indonesia in the 1960s and 70s helped Korea’s economic take-off.
Korea and Indonesia share common values of democracy, human rights, and market economy, and a history of developing these values.
Over the past half century since the establishment of diplomatic relations between the two countries in 1973, Korea and Indonesia developed bilateral ties in all fields, including politics, security, economy, trade and investment, science and technology, and social, cultural, and people-to-people exchanges, expanding the horizons of cooperation.
Based on the remarkable achievements of this cooperation, Indonesia is the only Southeast Asian country who has established a 'Special Strategic Partnership' relations with Korea.
Cooperation with Indonesia is not a choice but a necessity for Korea, especially amidst the recent international political and economic uncertainties such as US-China competition, global supply chain reorganization, and climate change.
Last year, 2023, marked the 50th anniversary of the establishment of diplomatic relations between Korea and Indonesia, and President Yoon paid an official visit to Indonesia as shown above, during which the two leaders decided to strengthen cooperation not only in traditional sectors such as manufacturing, sewing, and footwear, but also in practical and concrete cooperation in future industries such as electric vehicles, batteries, renewable energy, smart cities, and fintech.
Based on this consensus, Korea is expected to redouble her efforts to ensure that the next 50 and 100 years between the two countries will be a journey toward a "Special Strategic Partnership."