Indonesia, South Korea Strengthen Partnership with Rp173 Trillion in Business Investments
Coordinating Minister for Economic Affairs Airlangga Hartarto delivers a press statement after attending the Indonesia¬–Korea Partnership for Resilient Growth forum in Seoul, the Republic of Korea, on Wednesday (04/01).
Following President Prabowo’s visit to the Republic of Korea, Indonesia is committed to enhancing economic cooperation between the two countries by signing several Memorandums of Understanding (MoUs) worth US$10.2 billion, equivalent to approximately Rp173 trillion.
“The forum resulted in the signing of MoUs worth US$10.2 billion or approximately Rp173 trillion,” Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday (04/01). He made this statement to the press after attending the Indonesia–Korea Partnership for Resilient Growth forum in Seoul on behalf of President Prabowo, along with Minister of Investment/Head of the Investment Coordinating Board and CEO of Danantara Rosan Roeslani.
The Coordinating Minister stated that the cooperation focuses on several strategic sectors, including energy and green transition, such as solar power, carbon capture and storage (CCS), and other renewable energies. In addition, the cooperation also covers the industrial and manufacturing sectors, such as steel, batteries, and environmentally friendly transportation modes.
“These investments also venture into the AI and digital sector. They also extend into property and infrastructure, including the development of Bumi Serpong Damai City and business cooperation and association between the Indonesian Chamber of Commerce and Industry (Kadin) and the Korea Chamber of Commerce and Industry (KCCI), particularly to boost business commitments,” he continued.
The Coordinating Minister also mentioned that several large Korean corporations have expressed their intention to invest further in Indonesia. This includes POSCO in the steel industry development and Lotte, which will create opportunities for collaboration with Danantara as an investment partner.
Furthermore, the Coordinating Minister emphasized that President Prabowo’s visit to the country added to the investment achievements of his previous visit to Japan, resulting in investment commitments of US$ 23.6 billion or approximately Rp401 trillion. “It means that the President’s visits to both countries have resulted in investment commitments totaling Rp574 trillion,” he said.
According to him, this achievement demonstrates that Indonesia remains an attractive investment destination amid global geopolitical uncertainty. “This is a very significant number because, despite the uncertain geopolitical situation, Indonesia remains attractive to investors from both Japan and Korea,” he added.
On the occasion, the Coordinating Minister also reiterated the Government’s commitment to continuously improving the investment climate through debottlenecking measures, including addressing investment barriers faced by businesses. “We are preparing a debottlenecking mechanism so that all issues facing the business world can be resolved quickly,” he said.
He also stated that the discussions between the Indonesian and South Korean governments were very positive, following the bilateral meeting between President Prabowo and the President of the Republic of Korea Lee Jae Myung, which resulted in an understanding to enhance the strategic partnership between the two countries. This collaboration is expected to promote sustainable economic growth, drive industrial transformation, and bolster Indonesia’s position in the global supply chain across key strategic sectors. (BPMI of Presidential Secretariat) (FI/AW)
