South Korea and Indonesia to promote investments in supply chains

South Korea and Indonesia to promote investments in supply chains

The president of South Korea, Yoon Suk-yeol, and that of Indonesia, Joko Widodo, today sealed an agreement to promote joint investments in supply chains for industries such as vehicles and electric batteries.

Both leaders signed a memorandum of cooperation aimed mainly at encouraging the projects of South Korean companies in Indonesia, during a summit held today in Seoul on the occasion of Widodo’s visit to the South Korean capital as part of his Asian tour.

The agreement includes facilities for Indonesia to obtain licenses for sustainable investments in its territory, of interest to South Korean companies due to its wealth in raw materials such as nickel, key in the production of electric batteries.

The South Korean Ministry of Commerce, Industry and Energy announced for its part that the memorandum will strengthen the supply chains of steel, petrochemical products and other materials used in the technology industry and electric vehicles.

In this sense, the construction of new petrochemical plants, steel mills and other projects with the participation of companies from both countries is contemplated.

Widodo also held a meeting on Thursday with senior executives from some of the main South Korean companies, including the technology giant Samsung Electronics, the company in the same sector LG, the steel company POSCO or the vehicle manufacturer Hyundai, which was also focused on promoting investments.

During his visit, an agreement was also sealed between POSCO and the Indonesian state firm Krakatsu for the construction of new steel smelting facilities in the Indonesian city of Cilegon, worth 3,500 million dollars.

South Korea has made investments in Indonesia for a cumulative amount of 24.6 billion dollars, according to official data from Seoul, and the Southeast Asian archipelago is the twelfth largest destination for South Korean investments.

The Indonesian president’s visit to South Korea will last until Friday, and comes after his trip to Japan, where he agreed to strengthen defense, energy and infrastructure cooperation with Japanese Prime Minister Fumio Kishida.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.