South Korea and Indonesia are celebrating 50 years of diplomatic ties and are looking to strengthen their economic cooperation. They are focusing on areas such as electric mobility, infrastructure, finance, and technology to drive future growth. Trade volume between the two countries has grown significantly over the past five decades, from $185 million in 1973 to $26 billion in 2022. Indonesia, as the world’s largest producer of nickel, is attracting investments from Korean companies such as Hyundai Motor Group and Posco Holdings, who are interested in its abundant natural resources for electric vehicles. Hyundai is partnering with LG Energy Solution to build a battery cell plant in Indonesia, while Posco is establishing a nickel refining plant to strengthen its global value chain. Indonesia aims to become a supply hub by exporting refined raw materials. Another area of cooperation is infrastructure, with Indonesian companies partnering with Samsung C&T Corp. and Daewoo Engineering & Construction for the planned city of Nusantara. Korean IT and finance companies are also looking for opportunities in Indonesia’s growing market. However, there are risks associated with investing in Indonesia due to its volatile currency. To promote business opportunities, a forum called “Korea-Indonesia Economic Cooperation Forum” will be held in Jakarta on November 30. The forum will discuss cooperation in various sectors, including battery, infrastructure, and retail.
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