ASIATODAY.ID, GYEONGJU – South Korea reaffirmed its strong commitment to expand investment in Indonesia, covering key sectors such as energy, innovation, and future industries. The statement came as Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, met with South Korea’s Minister for Trade, Industry, and Resources, Kim Jung Kwan, ahead of the 2025 APEC Summit in Gyeongju, October 31, 2025.
“South Korea remains one of Indonesia’s most important partners in building a competitive and sustainable economy. We aim to elevate this partnership into a more strategic and concrete collaboration,” said Minister Airlangga.
South Korea ranked seventh among Indonesia’s largest investors in 2024, with over 2,000 Korean companies already operating across the country—reflecting strong investor confidence in Indonesia’s economy.
Both sides agreed to deepen cooperation in trade, investment, energy transition, and future industries through the Joint Committee on Economic Cooperation (JCEC). The 3rd Ministerial JCEC Meeting will be held in Indonesia in early 2026 to fast-track ongoing strategic projects.
Minister Airlangga also underscored the acceleration of cooperation under the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK-CEPA), describing it as “an essential instrument to generate tangible benefits for industries and communities in both nations.”
Hyundai’s Commitment to National Automotive Development
During his stay in Gyeongju, Minister Airlangga also met with Hyundai Motor Group President, Amb. Sung Kim, to discuss strategic investment and innovation in Indonesia’s automotive sector, including the national car project and the country’s transition toward future mobility.
Hyundai expressed strong interest in joining Indonesia’s national car initiative, supporting the nation’s ambition to become a major automotive hub in Southeast Asia.
“We see great potential for collaboration in hydrogen-based and clean-energy vehicles, which align with Indonesia’s green economy transition,” said Minister Airlangga.
President Sung Kim commended Indonesia’s vision to accelerate low-emission mobility, stating that Hyundai is committed to advancing sustainable, AI-driven, and hydrogen-powered mobility solutions.
He also praised Indonesia’s state-owned enterprise reform through Danantara, which he described as “a progressive signal for global investors to build deeper industrial partnerships with Indonesia.”
Hyundai invited Minister Airlangga to visit the company’s Research and Development Center during his next visit to Korea, signaling deeper collaboration in technology, innovation, and industrial integration.
Strengthening Industrial Ties with Lotte Chemical
In another meeting, Minister Airlangga held talks with Lotte Chemical Corporation CEO Young Jun Lee, focusing on the final phase of the USD 3.9 billion New Ethylene Project (LINE Project) in Cilegon, Banten. The high-tech petrochemical facility—one of the largest Korean investments in Indonesia—is scheduled to commence commercial operations in Q4 2025, with an official opening ceremony on November 6.
“We highly appreciate Lotte Chemical’s commitment to completing this strategic project on time and with high safety standards. It symbolizes the strength of Indonesia–Korea economic partnership and supports Indonesia’s industrial self-reliance,” said Minister Airlangga.
The new plant will significantly reduce import dependency and strengthen domestic production capacity, while also positioning Indonesia as a competitive player in the Asia-Pacific petrochemical supply chain. The project is expected to boost export potential, create quality jobs, and support Indonesia’s downstreaming and green economy agenda.
Minister Airlangga emphasized the crucial role of Indonesia’s Sovereign Wealth Fund, Danantara, in facilitating long-term strategic investments in priority sectors such as petrochemicals, energy, and high-tech infrastructure.
“Danantara plays a pivotal role in ensuring major projects are financially sustainable and deliver broad economic benefits,” he said.
Through this framework, Indonesia aims to transition from being merely an investment destination to becoming a strategic global partner in technology-driven and sustainable industrial development.
Minister Airlangga’s series of meetings in Gyeongju reflect Indonesia’s growing position as a key economic partner for South Korea—anchored in innovation, clean energy, and industrial transformation across the Asia-Pacific region. (AT Network)