South Korea ranked as the seventh largest investor in Indonesia in 2023, with an investment value of US$2.5 billion. This represents an increase of $200 million, 8.70 percent, from 2022.

Meanwhile, the total bilateral trade value between Indonesia and South Korea reached US$20.8 billion in 2023.

To strengthen economic cooperation between Indonesia and South Korea, Coordinating Economic Minister Airlangga Hartarto visited South Korea on Monday to hold bilateral meetings with the South Korean government and business leaders.

During his visit, Minister Airlangga met with South Korean business leaders to discuss cooperation opportunities in the automotive, electronics, semiconductor and hydrogen fuel development sectors in Indonesia. The cooperation between the two countries is continuously enhanced to foster innovative solutions for the future economies of both nations.

In a meeting with the CEO of LG CNS, Shingyoon Hyun, in Seoul on Monday, Airlangga expressed his appreciation to LG CNS for signing a memorandum of agreement (MoA) with Sinar Mas Group to establish a joint venture in data center management and information and communication technology (ICT) services, which is targeted to be completed by the second half of 2024.

“We hope that South Korea can increase its investments in various fields, especially in technology development, including enhancing human resources with technological training support,” said Airlangga.

In another meeting with Hyundai Motor Group CEO Euisun Chung on the same day, Airlangga appreciated Hyundai's active involvement in various global hydrogen projects, starting from Indonesia with a waste-to-hydrogen project and program utilizing local community waste.

The Indonesian government is also accelerating the development of electric vehicles (EVs) in Indonesia through the formulation of an EV development road map, providing various incentives and developing the EV ecosystem in the country.

“Hyundai is also a competent electric car manufacturer, so we encourage Hyundai to enhance the capacity of MSMEs [micro, small and medium enterprises] and local suppliers, Indonesian engineers to master EV matters, not just cars, but also engines and derivatives like charging stations, and for Hyundai to involve more local suppliers around its factories,” said Minister Airlangga.

Furthermore, in a meeting with the chairman of Lotte Chemical, Airlangga appreciated the realization of the investment and construction of a downstream petrochemical complex by Lotte Chemical. The project is targeted to be completed and operational by 2025. The plant will have a total production capacity of 3.1 million tonnes per year, with the 2025 production target set to produce 1 million tonnes of ethylene, 520,000 tonnes of propylene and 250,000 tonnes of polypropylene annually.

Airlangga hoped that the construction of the PT Lotte Chemical Indonesia plant could substitute imports, thus stimulating the local downstream petrochemical industry and supporting the creation of new jobs.

Airlangga receives honorary doctorate

For his efforts in promoting and maintaining collaboration between the two countries, particularly in the fields of economy, trade, investment and education, Coordinating Economic Minister Airlangga was awarded an honorary doctorate by Gyeongsang National University (GNU) in Jinju, South Korea, on May 21. The award was presented by GNU president Kwon Soon-Ki.

“I am truly grateful for this extraordinary appreciation from Gyeongsang National University. With a spirit of partnership that mutually supports each other, I hope that strategic cooperation in various fields between Indonesia and South Korea will continue to increase and provide significant benefits for both countries,” said Airlangga.

This prestigious recognition is an acknowledgment of Airlangga's full support and dedication to fostering collaboration and partnership between Indonesia and South Korea. The appreciation was also expressed by alumni of the university. "I congratulate Airlangga on his honorary doctorate and we are very proud that Mr. Airlangga is part of the GNU alumni.

“Following the GNU motto of always being a pioneer, we greatly appreciate Mr. Airlangga's expertise both personally and professionally in the field of economics and his ability to foster international relations,” said GNU alumni chairman Jeong Taek Soo.

During the award ceremony, Airlangga delivered a scientific oration outlining Indonesia's Vision 2045, the global economic and geopolitical conditions, medium and long-term economic growth strategies and commitment to global cooperation and reform.

Airlangga also discussed Indonesia's significant step in becoming the first Southeast Asian country to begin the process to join the Organization for Economic Co-operation and Development (OECD).

This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia