Indonesia’s Jokowi asks Korean firms to take part in new capital city project

The Korean business delegation has a meeting with the Indonesian counterpart at the Merdeka Presidential Palace in Jakarta on May 15(local). [Photo by Yonhap]

Indonesian President Joko “Jokowi” Widodo asked Korean companies to actively participate in the country’s project to build a new capital city of Nusantara on the island of Borneo during a meeting with a Korean business delegation at the Merdeka Presidential Palace in Jakarta on Monday.

“The new capital city of Nusantara will be established as a green city,” Jokowi said. “If it is built with Korea’s eco-friendly technology, it will become a symbol of cooperation between the two countries.”

The meeting took place as part of the “Maekyung Indonesia Forum” to be held on Tuesday in Jakarta to mark the 50th anniversary of diplomatic relations between Korea and Indonesia. During the meeting, Jokowi asked for cooperation from Korean companies in various fields, including the construction of a new capital city, strengthening the electric vehicle ecosystem, enhancing exchanges and cooperation in the agricultural sector, and investment in the machinery, electronics, textile, and chemical industries.

The Korean delegation consisted of 19 key officials from the government, National Assembly and business circle, including Maekyung Media Group Chairman Chang Dae-whan, Vice Chairman Chang Seung-joon, Agriculture Minister Chung Hwang-keun, National Assembly Foreign Affairs and Unification Committee Chairman Kim Tae-ho and LS Group Chairman Koo Ja-eun.

On the Indonesian side, many influential ministers were present, including Luhut Binsar Pandjaitan, coordinating minister for Investment and Maritime Affairs in charge of overseeing seven major ministries, as well as Minister of Investment Bahlil Lahadalia and Minister of State Secretary Pratikno.

“We plan to cover 70 percent of the energy used in the new capital city with green energy and raise the public transportation utilization ratio to 80 percent,” Jokowi said, stressing that there will be endless investment opportunities in the green economy, including renewable energy.

Indonesia’s Minister of Investment Bahlil said that “just as we lifted regulations on electric vehicles and batteries for Korean companies to invest, we will continue to take deregulation measures to promote investment.”

Jokowi also referred to the fact that a joint venture battery plant between Hyundai Motor Group and LG Energy Solution Ltd. will be in full operation next year, and expressed his hope that many Korean companies will take interest in establishing an electric vehicle ecosystem in the country. “South Korea is a good friend of Indonesia and we look forward to strengthening bilateral cooperation,” Jokowi said in celebration of the 50th anniversary of diplomatic ties between the two countries.

During the meeting, agricultural cooperation was also discussed, with Jokowi asking South Korea to expand imports of Indonesian agricultural products in response to Korean Agriculture Minister Chung’s proposal to “cooperate in smart farming, agricultural technology, agricultural infrastructure and halal food.”

It is also worth watching whether bilateral cooperation in the field of nuclear power will become visible after this meeting. Korea’s Trade, Industry and Energy First Vice Minister Jang Young-jin proposed to Jokowi bilateral cooperation in small modular reactors (SMRs), mentioning Korea’s technology and Indonesia’s topographical characteristics with many islands, and drew a positive response from the Indonesian side.

Meanwhile, Luhut will give a keynote speech at the Maekyung Indonesia Forum to be held under the theme of “Strong Partnership to Drive Growth,” and Bahil will be the speaker at the “Korea-Indonesia Future Cooperation” session to introduce Indonesia‘s investment strategy and promising areas.