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Korea and Indonesia hold Business Roundtable on sidelines of G20 2022-11-16

Trade, Industry and Energy Minister Lee Chang-yang attended the Korea-Indonesia Business Roundtable on November 14, held on the sidelines of the G20 summit convened in Bali, Indonesia, where 10 memorandums of understanding (MOUs) were signed by public and private parties of the two countries.

The roundtable was co-hosted by the Federation of Korean Industries (FKI) and Indonesian Chamber of Commerce and Industry (KADIN), and attended by 40 officials and business representatives. It was the first event for business leaders held in tandem with an ASEAN country following President Yoon Suk-yeol’s official proposal on November 11 to upgrade Korea-ASEAN relations to a “comprehensive and strategic partnership.”

At the roundtable, Korea and Indonesia signed a total of 10 MOUs, including the ones on Korea-Indonesia economic cooperation MOU amendment (digital partnership), green transition initiative, critical minerals and infrastructure development cooperation.

These MOUs are follow-up measures to the Indo-Pacific Strategy announced by President Yoon during the Korea-ASEAN summit, addressing five key areas: digital, supply chain, climate change, development cooperation and investment.

1) For digital cooperation, Korea’s Ministry of Trade, Industry and Energy (MOTIE) and Indonesia’s Coordinating Ministry for Economic Affairs agreed to an amendment of the Korea-Indonesia Economic Cooperation MOU and decided to bolster collaboration for not only energy and trade, but in terms of digital trade and industrial digital transition as well. Indonesia has Southeast Asia’s largest e-commerce market and is the biggest consumer of South Korea’s “Hallyu” content.

LG CNS and Indonesia’s Nusantara Capital City Authority signed an MOU on creating a smart city for the country’s new capital, under which a working group will be formed to provide the digital technological support required for the project.

2) For economic security (supply chain), Korea’s Ministry of SMEs and Startups and Indonesia’s Ministry of Cooperatives and SMEs signed an MOU for supply chain cooperation and exchange between their SMEs and startups.

Another MOU on supply chain was signed between Korea Mine Rehabilitation and Mineral Resources Corporation and the Indonesian Nickel Miners Association (APNI) for joint mineral exploration and mining project information exchange.

3) With regard to climate change, Korea’s Ministry of Environment and Indonesia’s Ministry of Public Works and Public Housing adopted a joint statement on the “green transition initiative”, on the basis of which the two nations will keep contributing to the international community’s efforts to accelerate climate action and thereby enable another major country or international organization to participate in the aforementioned initiative.

4) As for development cooperation, Korea’s Ministry of Land, Infrastructure and Transport and Indonesia’s Ministry of Transportation, along with three institutions in Jakarta, signed a development cooperation MOU to conduct Phase 4 of Jakarta MRT with aim to speed up project progress and strengthen bilateral cooperation. This MOU is also expected to promote participation in Indonesia’s city railway public-private partnership project in the future.

Meanwhile, Korea’s Hyundai Motor signed an Advanced Air Mobility (AAM) MOU with Indonesia’s Nusantara Capital City Authority and the Ministry of Transportation to assist the capital relocation to East Kalimantan.

Moreover, Korea’s Ministry of Oceans and Fisheries and Indonesia’s Ministry of Transportation signed an MOU on Korea-Indonesia maritime transport cooperation, through which increased collaboration for smart port and maritime transportation safety is anticipated.

5) The rising need and importance of Korea-Indonesia investment cooperation led to launching high-level investment talks between Korea’s Ministry of Economy and Finance and Indonesia’s Coordinating Ministry for Maritime and Investments Affairs, which will serve as a “fast track” channel for investment projects.

Following the MOU signing, FKI and KADIN also organized a business conference where major business figures of both countries came together to discuss joint measures across EVs, batteries, critical minerals, digital and clean energy for supply chain expansion and promotion of mutually beneficial cooperation.