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ndonesia and South Korea have pledged to boost cooperation in trade, investment and weaponry development, leaders of the two countries said on Thursday.  

President Susilo Bambang Yudhoyono and his South Korean counterpart Lee Myung-bak have agreed to step up their partnerships in infrastructure and manufacturing, and in defense industry sectors such as the production and trade of fighter jets, training aircraft, submarines, tanks and other weapons.   

In a joint press conference at the third Bali Democracy Forum, Yudhoyono hailed South Korea as an advanced nation with continuously improving welfare.  

“We both have agreed to enhance our cooperation in trade, investment and other economic aspects,” the President said.

Lee Myung-bak said he discussed a range of economic cooperation targets with his Indonesian counterpart, while praising Indonesia’s economy, democracy and national stability, which continue to improve.

“Korea expects to contribute to Indonesia’s economic growth through various cooperation plans.”

Coordinating Economy Minister Hatta Rajasa said President Yudhoyono conveyed his hope to double the two-way trade volume to US$40 billion.

Indonesia is South Korea’s 10th-largest trading partner, with mutual trade projected to reach over $20 billion this year, up from $15 billion in 2009.

The two-way trade volume in 2009 had exports from Korea worth $6 billion and imports from Indonesia worth $9 billion.

As of July, trade volume had surpassed $10 billion and was set to exceed $20 billion at the end of this year.

“In the near future, we will send a team of special envoys to South Korea to discuss more concretely our cooperation, especially in the fields of infrastructure, manufacturing JP defense,” Hatta said.

In 2009, South Korean investment in Indonesia was $550 million, and this year that investment is expected to reach a record high after a $6 billion investment injection from the South Korean company Posco.

Indonesia has become a main site of investment for South Korea because of the size of its economy, and its large workforce and extensive presence in energy, forestry and environment-related industries.

Yudhoyono also appreciated Lee’s attendance at the Bali Democracy Forum amid the conflict South Korea was facing with North Korea.

“Despite Korea’s domestic crisis, President Lee Myung-Bak is here. It shows his appreciation and solidarity with democracy in Asia,” Yudhoyono said.  

In response, Lee said he believed the forum was an asset for Asian countries to help develop democracy.