PM Lee, who is on a three-day visit in Jakarta starting Saturday, said it was important for the two countries to boost their economic cooperation amid increasing volatility in the global economy stemming from the escalating trade tensions between the United States and China, said Foreign Minister Retno Marsudi after the meeting.

“Both [leaders] agreed that the global economic situation currently is uncertain […] It is more important for South Korea and Indonesia to strengthen cooperation, not only in a bilateral context, but also in the context of regional economic integration,” said Retno on Monday.

She added that both leaders had also expressed their wishes that the Regional Comprehensive Economic Partnership (RCEP), which is currently being negotiated between ASEAN and six other countries, would be concluded by the end of the year.

The six other countries are: South Korea, China, Japan, India, Australia and New Zealand, all of which are trade partners with ASEAN under the ASEAN+1 Free Trade Agreement (FTA) to each partner country, with the exception that Australia and New Zealand are grouped under the same FTA.

“Both leaders hope that the RCEP’s negotiation will be concluded as soon as possible,” said Retno. “We hope that it will be concluded by the end of this year, but we will see the developments.”

The conclusion of the RCEP negotiation is vital as it will send a strong message to the global economy that the integration of the Asian economy is going smoothly under the agreement, Retno added.

Separately, South Korean Ambassador to Indonesia Kim Chang-beom told The Jakarta Post that in the appointment, Lee shared a similar level of concern with Jokowi on the recently growing trade frictions and protectionism in the global trade scheme.

“Prime Minister Lee emphasized the need for both countries to work together toward open, free and fair trade in the midst of increasing challenges coming from trade wars,” he said via WhatsApp messenger.

He confirmed that Jokowi had raised the issue on the need to complete negotiations on the ongoing RCEP.

“PM Lee did not comment on that, but it is South Korea’s position to expedite the ongoing RCEP negotiations hopefully by the end of 2018,” he added.

The RCEP has the objective of achieving “a modern, comprehensive, high-quality and mutually beneficial economic partnership agreement” between ASEAN member states and its FTA partners, according to the RCEP’s guiding principles and objectives for negotiation.

The agreement is set to cover trade in goods and services, investments, economic and technical cooperation and dispute settlement, among others.

Aside from strengthening trade relations, Retno added that PM Lee had also affirmed its commitment to continue increasing the investment from South Korea to Indonesia.

Foreign direct investment from South Korea amounted to US$1.15 billion in the first half of this year, according to data from the Coordinating Investment Board (BKPM), placing the country as the fourth-largest foreign investor to Indonesia, below other regional peers such as Japan and China.

The latest figure was up from $901.3 million in South Korean investment poured in the country over the same period last year.

Apart from the RCEP, both leaders also highlighted denuclearization of the Korean Peninsula, in which Lee conveyed his appreciation of the Indonesian government for its consistent stance in support of peace and stability on the Korean Peninsula, Retno added on the same occasion.

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