South Korea, Indonesia to promote investment in supply chains

Seoul, Jul 28 (EFE).- South Korea’s President Yoon Suk-yeol and his Indonesian counterpart, Joko Widodo, signed Thursday an agreement to promote joint investments in supply chains for industries such as electric batteries and vehicles.

The two leaders signed a memorandum of cooperation aimed primarily at encouraging South Korean business projects in Indonesia during a summit in Seoul on the occasion of Widodo’s visit to the South Korean capital as part of his Asia tour.

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

South Korea’s Ministry of Trade, Industry and Energy announced that the memorandum will boost the supply chains of steel, petrochemicals and other materials used in the electric vehicle and technology industry.

In this regard, it also envisages the construction of new petrochemical plants, steel mills and other projects with the participation of companies from both countries.

Widodo also held a meeting on Thursday with senior executives of some of South Korea’s major companies, including tech giant Samsung Electronics, LG, the steel company POSCO and the vehicle manufacturer Hyundai, focused on promoting investments.

During his visit, an agreement was also signed between POSCO and Indonesian state-owned firm Krakatsu for the construction of new steel smelting facilities worth $3.5 billion in the Indonesian city of Cilegon.

The Southeast Asian archipelago is the 12 largest destination for South Korean investments, which amount to a total of some $24.6 billion, according to official data from Seoul.

Widodo’s visit to South Korea concludes Friday, and comes after a trip to Japan, where he signed agreements to strengthen cooperation on defense, energy, and infrastructure with Prime Minister Fumio Kishida. EFE

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