Korea, Indonesia sign 16 biz deals in Jakarta

Korea and Indonesia clinched a total of 16 deals at the business round table held Thursday in Jakarta, boosting cooperation on advanced technology and key minerals between the two countries.

Chiefs of Korean companies, including Hyundai Motor Group Chair Euisun Chung, far right, attend the business round table held in Jakarta, Indonesia, on Thursday. [YONHAP]

Korea and Indonesia clinched a total of 16 deals at the business round table held Thursday in Jakarta, boosting cooperation on advanced technology and key minerals between the two countries.

The deals were made in areas of small modular reactors, mobility, minerals and clean energy, among others.

The round table, held at a hotel in Jakarta, Indonesia on Thursday evening, was attended by some 40 business leaders from both countries.

Korean President Yoon Suk Yeol, who is visiting the Southeast Asian country for the Asean summit, also participated in the business event.

The two countries agreed to cooperate on developing small modular reactors by trading related data and fostering talent in the field.

Korea’s Kakao Mobility and Indonesia’s Soulparking signed a memorandum of understanding (MOU) to cooperate on offering comprehensive mobility services, including parking lots.

The two countries also agreed to jointly establish research centers focusing on core minerals in order to build a supply chain between Indonesian minerals and Korea’s electric vehicle (EV) battery business.

Indonesia has the world’s largest nickel reserves, and the second-largest for cobalt.

Doosan Enerbility will cooperate on shifting Indonesia’s Suralaya plant to eco-friendly facilities. It will also work with a coal power plant company to codevelop a roadmap to build a supply chain for green ammonia.

Korea’s LS Electric signed a joint venture with Indonesia’s Symphos to manufacture transformers, and inked an MOU with AG Group to roll out electric power equipment business together.

Leaders of big businesses from Korea including Hyundai Motor Group Chair Euisun Chung and LG Corp. Chairman Koo Kwang-mo and Lotte Group Chairman Shing Dong-bin also attended the event.

"Indonesia was Korea's first overseas investment and bilateral cooperation has developed from materials and secondary manufacturing such as textiles to future industries, including batteries and EVs," Chung said during the event.

"“Many Korean companies will be together with Indonesia in various fields including IT, EV ecosystem, medical, electricity infrastructure and fashion.” Hyundai Motor is most keen on advancing into the Southeast Asian country, as its auto market is not yet saturated and has room for growth.

The Korean automaker ranked No. 1 in Indonesia's EV market this year as of July, grabbing more than half of the fledgling segment.

It built its first Southeast Asian manufacturing facility last year with an initial annual capacity of 150,000 units. It is also building a joint battery factory with LG Energy Solution in the country with the target of starting production next year.

LG Electronics has been manufacturing TVs, refrigerators, washing machines and air conditioners in the country since 1990.

Lotte runs 50 retail outlets in Indonesia.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]