The 1st High-Level Dialogue on Investment Between Korea and Indonesia
The 1st High-Level Dialogue on Investment Between Korea and Indonesia
The 1st High-Level Dialogue on Investment between Korea and Indonesia was held in Seoul on March 23. The meeting was joined by government officials from the two countries’ related ministries, led by Kyungho CHOO, Deputy Prime Minister and Minister of Economy and Finance of Korea, and Luhut Binsar Pandjaitan, Coordinating Minister of Maritime Affairs and Investment of Indonesia.
This meeting took place as both sides agreed to launch a dialogue on investment at the Korea-Indonesia business roundtable held on the occasion of the Korea-Indonesia Summit Meeting in November 2022. The high-level dialogue carries significance as an opportunity for practical discussions to address difficulties and expedite processes when it comes to investment cooperation projects.
Major discussions
In his opening remarks, DPM CHOO noted that Indonesia was the first destination for Korea’s foreign direct investment (FDI) as well as major Korean companies’ overseas business mainly due to the country’s investment-friendly policies and stable market environment. DPM CHOO suggested the role of the high-level dialogue by introducing channels for 3Cs (communication, confidence and cooperation).
- As for communication, he stressed that the dialogue should serve as a hotline to promote direct communication of both governments to address Korean companies’ difficulties as well as a fast track to ease the investment bottleneck.
- Regarding confidence, DPM CHOO emphasized the importance of devising reliable policies to support investment and produce tangible outcomes to ensure that Korean companies will beef up their investment in Indonesia based on their confidence about the dialogue’s outcomes.
- In terms of cooperation, he suggested diversifying economic cooperation mechanisms in various fields as agreed upon during the Summit Meeting in November 2022 and continuing to expand the scope of cooperation.
Minister Pandjaitan emphasized that the investment cooperation projects need to be expanded and diversified to solidify bilateral economic cooperation amid a high probability of global economic downturns.
Minister Pandjaitan also mentioned that he will explore areas where Indonesia can provide further policy support such as streamlining related procedures to foster an investment-friendly environment for Korean companies, and asked for the Korean government’s continuous interest and support for the investment cooperation projects.
In response, DPM CHOO pledged that Korea will cooperate for Indonesia’s plan to build a new capital based on Korea’s experiences of relocating its administrative capital and expertise in smart city, future mobility and IT technologies.
During the meeting, Korean and Indonesian officials reviewed the implementation progress of MOUs[1] and discussed ways to address challenges and seek bilateral cooperation regarding Indonesia’s projects invested by Korean companies in the fields of industrial production, infrastructure, green and maritime technologies and healthcare.
As both sides agreed to officially activate a fast track dedicated to monitor the progress of investment cooperation projects and come up with additional tasks, Indonesia is expected to attract more investment from Korean companies while chances are higher for Korean companies to join Indonesia’s large-scale infrastructure projects going forward.
[1] Korea and Indonesia agreed to sign 10 MOUs during the Korea-Indonesia business roundtable held on the occasion of the Summit Meeting in November 2022.
Please refer to the attached pdf.
