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em>This year, South Korea and Indonesia are celebrating four decades of the establishment of diplomatic ties, which have grown stronger. The launching of an historic strategic partnership in 2006 improved relations further. According to Indonesian data, with US$27 billion in bilateral trade, South Korea became the fourth biggest trading partner of Indonesia in 2012. It became the third-biggest foreign investor in Indonesia, with $1.94 billion investment. The Jakarta Post’s Veeramalla Anjaiah interviewed South Korean Ambassador to Indonesia Kim Young-sun on the state of bilateral relations on Thursday. Here are excerpts of the interview:

Question: What have been the noticeable features of four decades-old diplomatic relations?

Answer: In the past, the relations were only developed around investments such as the forestry and garment sectors. Now we see the two countries sharing a common vision, values and the will to contribute to the international community as middle-powers. Cooperation has been expanded to a number of mega projects and advanced industries like ICT and green growth. The term ‘strategic partnership’ is best to describe the current deepened ties. It’s evident in political, economic, social and cultural cooperation and even defense industries, then develops further into a global partnership at the G20, ASEAN+3, United Nations, ARF [ASEAN Regional Forum], ASEM [Asia-Europe Meeting], etc.

Though the relations began 40 years ago, bilateral ties took a major upward turn only in the 21st century. The trade, investment and cultural links between both countries have been booming. What were the main reasons for the unprecedented boom? Was it the strategic partnership in 2006 or former president Lee Myung-bak?

Fast growing trade and investment enabled the two governments to agree on a ‘strategic partnership’ in 2006. Friendship between the leaders reinforced this partnership. Both governments cooperate closely for the successful implementation of MP3EI [Master Plan for the Acceleration and Expansion of Indonesian Economic Development]. I believe the unprecedented boom resulted from efforts to materialize the potential of cooperation.

Until recently, Indonesia used to consider Koreans living in Indonesia as “closed” and “exclusive” because they never mingled with Indonesians. Now, thanks to the Korean Wave, many Indonesians are crazy about Korea. There is also an “Indonesian fever” among Koreans. What has led to this revolutionary change?

I am proud to see the Korean community has mingled very well with Indonesian society. Korean pop culture is well known to the Indonesian public and, at the same time, Koreans in Indonesia enjoy Indonesian culture a lot.

The Korean community raises their voices with their Indonesian friends, saying ‘Mari bekerja sama! [Let’s Work Together!]’ The Embassy tries to guide these voices in a direction where closer interaction and harmonization is possible. The next Korean generations wish to maintain good relations with their counterparts in HIPMI [Indonesian Young Entrepreneurs Association]. It is also noteworthy to mention the contribution of Korean companies to the local community through very active CSR [corporate social responsibility]. Koreans have been firm supporters of CSR in Indonesia, as shown by cooperation with APINDO
[Indonesian Employers Association] and the ILO [International Labor Organization].

How did bilateral relations progress in 2012?

Reciprocal visits by our leaders in 2012 put a great stimulus on the advancement of relations. President Susilo Bambang Yudhoyono visited Korea as a state guest in March 2012 and [then] president Lee Myung-bak visited Bali to attend the Bali Democracy Forum in November 2012. Korea ranked third in Indonesia’s foreign direct investment in 2012. Bilateral trade reached $29.6 billion despite the risks from the global economic downturn. We witnessed some mega projects being carried out in the steel and auto-parts sector. Cultural interests have also flourished. I’ve often heard ‘Gangnam Style’ playing in every mall and now I-Pop star S4 [from Indonesia] is delivering great performances in Korea.

What are the challenges in taking these relations to a higher level?

As bilateral relations deepen and widen, it’s only natural to see challenges increase. The best means to solve daily friction is to garner the spirit of mutual understanding and favorable consideration. Korea will try to understand Indonesia’s new policies as responses to domestic challenges and global dynamics as well as efforts to serve national interests. We also expect Indonesia to provide favorable consideration on the basis of mutual respect and the spirit of cooperation. Labor issues and the minimum wage hike pose concerns to Korean businesses, of which closer consultation is needed in order to arrive at reasonable
solutions.

How do you see the future of strategic ties in the coming five years?

The new President Park Geun-hye puts great significance on the relations. President Park and Vice President Boediono reconfirmed their determination and commitment to further develop our cooperation. I hope the on-going negotiations on the Comprehensive Economic Partnership Agreement [CEPA] will bear fruit this year. The agreement will strengthen the base of Indonesia-Korea relations.