Industry Minister Reviews Moon's 'New Southern Policy' in Indonesia... Strengthening Supply Chain Cooperation

Minister Moon Seung-wook Meets with Indonesian Minister of Energy and Mineral Resources
(Seoul=Yonhap News) On the 21st (local time), Moon Seung-wook, Minister of Trade, Industry and Energy, met with Arifin Tasrif, Indonesian Minister of Energy and Mineral Resources, at the office of the Indonesian Ministry of Energy and Mineral Resources in Jakarta. February 22, 2022
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[Asia Economy Sejong=Reporter Lee Jun-hyung] The government has reviewed the ‘New Southern Policy’ centered on ASEAN (Association of Southeast Asian Nations) announced in 2017 and has begun strengthening supply chain cooperation with Indonesia.

The Ministry of Trade, Industry and Energy announced on the 22nd that Minister Moon Seung-wook visited Jakarta, Indonesia, starting on the 20th and presided over the ‘Korea-Indonesia Economic Cooperation Committee.’ Minister Moon’s visit to Indonesia was arranged to review the progress of the New Southern Policy, which President Moon Jae-in announced in 2017. At that time, President Moon declared in Jakarta that ASEAN diplomacy would be elevated to the level of the four major powers (the United States, China, Japan, and Russia).

Minister Moon emphasized the achievements of the New Southern Policy at the Korea-Indonesia Economic Cooperation Committee. According to the Ministry of Trade, Industry and Energy, last year, trade between Korea and New Southern countries amounted to $200.2 billion, an increase of about 49% compared to 2016 ($134.9 billion). Trade between Korea and Indonesia also steadily increased from $14.894 billion in 2016 to $19.279 billion last year. Furthermore, from 2017 to 2020, Korea’s direct investment in New Southern countries increased by about 77% compared to 2013?2016. Minister Moon anticipated that economic relations with ASEAN would become closer as the network expanded with the signing of FTAs with Cambodia, the Philippines, and others following the Korea-Indonesia Comprehensive Economic Partnership Agreement in December 2020.

Minister Moon Seung-wook greeting the Indonesian Minister of Investment
(Seoul=Yonhap News) Moon Seung-wook, Minister of Trade, Industry and Energy (right), is greeting Bahlil Lahadalia, Minister of Investment of Indonesia, at the Minister of Investment’s office in Jakarta, Indonesia, on the 21st (local time) before their meeting. 2022.2.21
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The Ministry of Trade, Industry and Energy signed a Memorandum of Understanding (MOU) with Indonesia for supply chain cooperation. The areas of cooperation include five sectors: critical minerals, four-wheel electric vehicles, two-wheel electric vehicles, electric vehicle charging infrastructure, and economic free zones. Minister Moon stated that to respond to global supply chain issues, cooperation between the two countries must be expanded. He also requested the Indonesian government to provide follow-up support such as subsidies and charging infrastructure construction to expand Korean companies’ investment in electric vehicles. The Indonesian side expressed willingness to actively cooperate with Minister Moon’s proposals.

On the same day, Minister Moon visited the Hyundai Motor plant located in the Deltamas complex in Indonesia. This plant is the first complete vehicle factory Hyundai established in ASEAN after President Moon announced the New Southern Policy. Once the electric vehicle production line, currently being built with a target completion next month, is finished, it will become Indonesia’s first electric vehicle factory. During the inspection of the electric vehicle production line, Minister Moon said, “Hyundai’s plant in Indonesia is a representative achievement of the New Southern Policy.”

Cooperation for carbon neutrality is also expected to accelerate. Minister Moon met with Luhut Panjaitan, Minister of Maritime Investment Coordination who oversees energy policy in Indonesia, and Arifin, Minister of Energy and Mineral Resources, and agreed to strengthen cooperation in renewable energy. They discussed actively utilizing public-private cooperation channels such as the ‘Korea-Indonesia Energy Forum,’ held annually since 2007.