"Hyundai Motor 250,000 Units · Lotte Ethylene Annual 1 Million Tons Production"… Expansion of Korea-Indonesia Cooperation

KCCI-Indonesian Chamber of Commerce Jointly Host 'Korea-Indonesia Business Forum'

Minister of Industry Emphasizes "Raw Material Supply Chain Cooperation" and More

Officials from Hyundai Motor Company's Indonesian production subsidiary pose for a commemorative photo at the delivery ceremony of the first Creta model produced locally on the 17th of last month. Hyundai Motor Indonesia has started mass production at the factory completed in the Deltamas Industrial Complex, Bekasi, West Java. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Hyundai Motor Company is increasing the production capacity of its Indonesian factory from 150,000 units to 250,000 units. Lotte Chemical is building a mega petrochemical complex in Banten Province, Indonesia, capable of producing 1 million tons of ethylene annually.

On the 22nd, the Korea Chamber of Commerce and Industry (KCCI) announced that it held the "Korea-Indonesia Business Forum" online together with the Indonesian Chamber of Commerce and Industry. Moon Seung-wook, Minister of Trade, Industry and Energy, who is visiting Indonesia, participated directly from Jakarta to encourage businesspeople from both countries. On the Korean side, about 20 people attended both online and offline, including Woo Tae-hee, Executive Vice Chairman of KCCI, Lee Ho-sik, Group Head of SK E&S, Lee Kwan-ho, CEO of Lotte Chemical Indonesia, Lim Hyung-chan, Vice President of CJ CheilJedang, Koo Hyuk-seo, Executive Director of LX International, and Kim Nam-ho, Managing Director of LG Energy Solution. On the Indonesian side, about 30 key businesspeople attended, including Airlangga Hartarto, Coordinating Minister for Economic Affairs, and Shinta Widjaja Kamdani, Vice Chairman of the Indonesian Chamber of Commerce and Industry.

Hyundai and Lotte Announce Production Expansion Plans

At the forum, in-depth discussions were held on successful cases of entry into each other's markets and strategies for expanding future economic cooperation. Yoon Sang-hoon, Head of Hyundai Motor's Asia-Pacific Planning Office, stated, "Hyundai Motor began mass production at the complete vehicle factory in the Indonesian Deltamas Automotive Industrial Complex last month," adding, "We plan to increase the current production capacity of 150,000 units to 250,000 units through additional investment."

Lee Kwan-ho, CEO of Lotte Chemical Indonesia, also said, "Lotte Chemical plans to build a mega petrochemical complex in Banten Province, Indonesia, capable of producing 1 million tons of ethylene annually," adding, "We will commercially operate the Heavy Petroleum Cracking Complex (HPC) within the first half of the year to strengthen the competitiveness of existing businesses and actively expand our business portfolio into hydrogen and secondary battery materials."

SK E&S, which is accelerating the development of a liquefied natural gas (LNG) terminal in Indonesia, also signed a Memorandum of Understanding (MOU) for cooperation with the Indonesian Gas Company at the forum. SK E&S has had a 20-year long-term LNG supply contract with Indonesia's Tangguh since 2005 and has been directly importing 500,000 to 600,000 tons of LNG annually since 2006.

Korea Emphasizes Raw Material Supply Chain Cooperation

At the forum, Minister Moon emphasized the need to strengthen cooperation in raw material supply chains between the two countries. He reminded attendees of the recent sharp rise in major raw material prices due to the Ukraine crisis. In his congratulatory speech, Minister Moon said, "Cooperation between companies of the two countries is becoming larger and faster, and investment cooperation in new industries such as electric vehicles and secondary batteries is also expanding." He added, "It is necessary to cooperate in raw material supply chains to ensure the stability and predictability of manufacturing industries in both countries in the future," and stressed the need to expand cooperation in renewable energy for carbon neutrality implementation and international climate change response, upgrade the Free Trade Agreement (FTA) network, and collaborate in new industries.

Minister Hartarto responded, "The fusion of Korea's technological capabilities, Indonesia's resources, and young talent is important," adding, "Investment cooperation between the two countries is very meaningful as it provides new business opportunities for Korean companies and serves as a catalyst for industrial development in Indonesia." He further said, "Recently, the Indonesian government has been promoting the relocation of the new capital and regional balanced development policies," and added, "Based on large-scale infrastructure investment projects to revitalize transportation and logistics, active infrastructure cooperation between the two countries is expected."

KCCI to Actively Support Entry of Electric Vehicle and Battery Companies

The Korea Chamber of Commerce and Industry, which organized the forum, stated that since the Comprehensive Economic Partnership Agreement (CEPA) between the two countries has been concluded, lowering entry barriers for companies, it will spare no support.

In his welcoming remarks, Vice Chairman Woo said, "Since establishing the 'Korea-Indonesia Economic Cooperation Committee' in 1974, KCCI and the Indonesian Chamber of Commerce and Industry have been working together on economic cooperation measures," adding, "The ODA cooperation agreement for mutual recognition of qualification exams and system establishment signed today by the chambers of commerce of both countries is expected to become a model cooperation case that nurtures talent needed for the Fourth Industrial Revolution and digital transformation and develops a global standard certification system."

Lee Sung-woo, Head of the International Trade Division at KCCI, said, "With the conclusion of CEPA, economic barriers between Indonesia and Korea have been lowered, improving investment conditions for companies of both countries," adding, "We will continue to create opportunities for exchanges between governments and companies of both countries so that Korean companies in new industries such as petrochemicals, steel, construction services, electric vehicles, and batteries can actively enter the market."

This content was produced with the assistance of AI translation services.