Korea and Indonesia Strengthen Economic Cooperation on Electric Vehicles and Sustainability

Strategic Insights -

Korea and Indonesia have further solidified their long-standing economic partnership with the 2nd Korea-Indonesia Economic Cooperation Committee Meeting, where both nations committed to increasing joint investment in the production of electric vehicles (EVs) and batteries in Indonesia. This development aims to bolster bilateral economic cooperation, deepen collaboration on climate change response, and reach carbon neutrality through international joint projects. The meeting also touched on cooperation in official development assistance (ODA) projects in industrial, energy, and standardization areas, including the training of industry personnel and enhancing the service capability of legal metrology.

Key Takeaways:

  • The 2nd Korea-Indonesia Economic Cooperation Committee Meeting was held on July 24 at the Lotte Hotel Seoul, where the delegations agreed to continue joint investment in the production of electric vehicles (EVs) and batteries in Indonesia.
  • The sides also agreed to expand investment in strengthening the supply chain for nickel and critical minerals for batteries, as well as establish a plant for manufacturing electric powertrains for two-wheelers in view of Indonesia's promising electric two-wheeler market.
  • Both parties agreed to deepen collaboration in efforts to reach carbon neutrality through international joint projects for GHG reduction, green hydrogen production, and the establishment of solar power generation facilities.
  • The meeting also focused on cooperation in official development assistance (ODA) projects, including the training of "Ppuri (root)" industry personnel, EV charging station management, and enhancing the service capability of legal metrology.
  • Deputy Trade Minister Jeong Dae-jin led the Korean delegation, while Deputy Minister for Coordination of International Economic Cooperation Edi Prio Pambudi led the Indonesian delegation.

Statistics:

  • Indonesia's electric two-wheeler market is a promising area for investment, with both parties aiming to establish a plant for manufacturing electric powertrains.
  • greenhouse gas (GHG) reduction efforts will be collaborated through international joint projects, aiming to reach carbon neutrality.
  • Official development assistance (ODA) projects will focus on industrial, energy, and standardization areas, including the training of industry personnel.

Sources:

  • South Korean Ministry of Trade, Industry and Energy July 26, 2023
  • Contify.com 2017