Korean Economic Delegation Enhances Ties with Indonesia

In a significant move to bolster economic cooperation, a high-profile Korean delegation, led by Lotte Group Chairman Shin Dong-bin, met with Indonesian President Prabowo Subianto. This meeting marks the beginning of a new chapter in bilateral relations, focusing on sectors like advanced manufacturing and renewable energy.

Key figures from both nations, including Shin Dong-bin and Shinta Kamdani, chairwoman of APINDO, were present at the signing of a memorandum of understanding, symbolizing the commitment to mutual growth and development.

Investment and Collaboration Prospects

With Korean investments in Indonesia surpassing 23 trillion won, the delegation discussed plans for further collaboration in various industries. Companies like Hyundai Motor and Lotte Shopping are set to expand their footprint in the region, focusing on electric vehicles and distribution networks, respectively.

The Federation of Korean Industries (FKI) emphasized the strategic partnership between Korean manufacturing prowess and Indonesia's rich resources, aiming to drive high value-added industrialization in Indonesia.

Overcoming Challenges for Smoother Operations

Despite the progress, the delegation addressed existing non-tariff barriers with Indonesian officials, seeking smoother business operations. The Korea-Indonesia CEPA has eased some processes, but challenges like halal certification remain.

Kim Bong-man of FKI highlighted the delegation's role in creating momentum for economic cooperation under the new Prabowo administration, aiming for a practical platform to enhance trade and investment between the two countries.