T

he economic and business relations between the member states of the Association of Southeast Asian Nations (ASEAN) and South Korea opens up a lot of exciting new opportunities, president and chief executive officer (CEO) of Geala Group Sofjan Wanandi says.

In a speech to business leaders during the ASEAN-South Korea CEO summit recently in Jeju Island, South Korea, Sofjan said relations could be further enhanced by the ASEAN single market planned to come into effect by 2015.

"We welcome South Korea's involvement in the building of the ASEAN economic community. Korea will definitely benefit from an ASEAN that continues to prosper. In a sense we are all in the same boat in our journey to improve the wellbeing of our people," said Sofjan, who is also chairman of the influential Indonesian Employers' Association.

Indeed, South Korea's trade with ASEAN has been increasing and has surpassed its trade with Japan and United States, according to Sofjan.

"I believe it will soon also surpass South Korea's trade with the entire European Union, making ASEAN the second largest trading partner of Korea after China," he said.

Last year, South Korea's trade with ASEAN countries stood at US$90.19 billion. It exported $49.28 billion worth of goods to the ASEAN countries and imported $40.91 billion goods from the regional bloc.

In 2008, South Korea invested some $5.85 billion in all ASEAN countries, except Brunei, according to South Korean authorities.

With bilateral trade topping $19.25 billion, Indonesia is South Korea's second biggest ASEAN trading partner after Singapore. Indonesia's exports to South Korea reached $11.32 billion, while Indonesian imports were $7.93 billion.

In order to boost trade expansion, Indonesia has opened up a trade promotion office in South Korea.

Indonesia's main exports to South Korea are mineral fuels, (mostly oil and liquefied natural gas), which constituted around 60 percent of export value in 2007.

Almost 40 percent of Indonesia's imports from South Korea in 2007 comprised of mineral fuels. Other imports included iron, steel, plastics, nuclear reactor parts, organic chemicals and electrical equipment.

Sofjan said aside from boosting trade, Indonesia should also actively attract more investment from South Korea by making use of the ASEAN and South Korean comprehensive cooperation agreement.

"This is expected to *help* alleviate investment shortages that has afflicted Indonesia since the 1997 Asian financial crisis."

South Korea invested $719.10 million in Indonesia in 2008.

With increasing trade and investment activities, South Koreans are now the largest expatriate population in Indonesia, outnumbering Japanese who were predominant before the Asian financial crisis.