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South Korea to help Indonesia realize its EV production dream
President Joko “Jokowi” Widodo swore in businessman Gandi Sulistiyanto as Indonesian ambassador to South Korea late last year. In a recent online conversation with The Jakarta Post’s Kornelius Purba, the ambassador talked about his bid to boost the relationship between the two countries. The following are the excerpts of the interview.
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Shift to electric: President Joko “Jokowi” Widodo inspects an electric car and battery charging device on the sidelines of the groundbreaking of a South Korean electric vehicle (EV) battery plant in Karawang, West Java on Sept. 15, 2021. (Antara/Media Press Bureau of Presidential Secretariat/Agus Suparto)
Question: is there any specific instruction from President Joko “Jokowi” Widodo?
Answer: The President asked me to focus on the economic sector. South Korea has been one of Indonesia’s main investment partners. It is heartwarming to witness the significant progress of South Korean investment in Indonesia that has led to closer industrial cooperation between the two countries.
In 2021, South Korea’s foreign direct investment (FDI) in Indonesia ranked sixth, after Singapore, Japan, China, Hong Kong and the Netherlands. Statistics from the FDI Market show that in the last five years, Indonesia was the fourth most attractive destination country for South Korean FDI after Vietnam, China, and the United States.
Despite the pandemic, South Korean FDI in Indonesia in 2021 reached US$1.64 billion, mainly in the manufacturing sector, while still choosing Java as the primary site.
We succeeded in winning a big electric vehicle (EV) project from Korea and will target the entire Southeast Asian market. The establishment of the Hyundai battery cell plant in Indonesia will generate an ecosystem to help Indonesia leap forward as a leading EV producer.
We are not only focusing on the production of the electric cars but also the supply chain. It takes cooperation between multiple stakeholders in developing the ecosystem. POSCO will take part in producing the body parts of these EVs. Meanwhile, the manufacturing of lithium batteries will be handled by Hyundai.
Hyundai and LG, two of the big three chaebols in South Korea, have invested heavily in Indonesia. This means that Indonesia is one of South Korea's primary destinations for investment.
