Lee Chang-yang, Minister of Industry, Strengthens Green Investment and Supply Chain Cooperation with Indonesian Government

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is delivering opening remarks at the 1st Emergency Economic Ministers' Meeting held at the Government Seoul Office in Jongno-gu, Seoul, on the afternoon of the 19th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Sejong=Reporter Dongwoo Lee] On the 28th, the Ministry of Trade, Industry and Energy announced that Minister Lee Chang-yang signed a 'Memorandum of Understanding on Promoting Sustainable Eco-friendly Investment Cooperation' with Bahrril Lahadalia, Minister of Investment of Indonesia, following the Korea-Indonesia summit.

The signing ceremony took place at the Presidential Office in Yongsan, Seoul, after the bilateral summit, attended by President Yoon Suk-yeol and Indonesian President Joko Widodo (Jokowi).

Through this memorandum, both governments agreed to actively support Korean companies' investment activities in Indonesia by promoting investment in eco-friendly green industries such as renewable energy, electric vehicles, and batteries, as well as technology development and transfer.

The Indonesian Ministry of Investment pledged to assist Korean companies in obtaining permits during their eco-friendly investment processes and to resolve various difficulties.

Korea's cumulative investment in Indonesia amounts to $24.6 billion (approximately 32 trillion KRW), making Indonesia the 12th largest investment destination for Korea. Among the 10 ASEAN member countries, Indonesia ranks third after Vietnam ($43.9 billion) and Singapore ($37.2 billion).

The Ministry of Trade, Industry and Energy expects that this memorandum will significantly help create favorable conditions for ESG (Environmental, Social, and Governance) and international greenhouse gas reduction projects as Korean companies expand their investments in Indonesia.

Additionally, both countries agreed to strengthen projects to build the entire value chain?from mining, smelting, and refining nickel raw materials to materials (precursors and cathode materials) and battery cells?in Indonesia, which is rich in nickel, a key mineral for batteries.

They also agreed to establish a stable supply chain between Indonesia and Korea, covering everything from basic raw materials such as minerals to products, including petrochemical plant construction and integrated steel mill expansion.

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