KOTRA Holds 'Business Plaza' with Indonesia, a Key Nickel Producer for Electric Vehicles

"Full Effort on 'Export Plus' Utilizing Korea-Indonesia RCEP CEPA and Other Trade Cooperation"

Exterior view of KOTRA headquarters in Yeomgok-dong, Seocho-gu, Seoul. (Photo by KOTRA)

[Asia Economy Reporter Moon Chaeseok] KOTRA announced on the 27th that it will hold the 'Future New Industry Business Plaza 2022' between resource-rich Indonesia, a key supplier of electric vehicle raw materials such as nickel, and Korean companies.

KOTRA will hold the event at the Fairmont Hotel in Jakarta, Indonesia, starting the next day. The event is part of efforts to respond to the trade deficit crisis by leveraging the momentum of the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA) and the Regional Comprehensive Economic Partnership (RCEP) ratification by Indonesia.

Moreover, it was planned to secure Korea's opportunities in Indonesia's future new industries. KOTRA has designated Indonesia as a key economic cooperation country this year and one of the top 15 promising countries for the 'Export Plus' project, promoting diversified cooperation expansion.

According to KOTRA, Indonesia is a core ASEAN country accounting for 41% of the ASEAN population and 34% of GDP. It possesses abundant coal, crude oil, and natural gas. Above all, it is attractive as the world's number one producer of nickel, a key material for electric vehicle batteries. According to this year's survey by the U.S. Geological Survey, Indonesia holds 22% of the world's nickel reserves and accounts for 37% of production.

Consequently, Korean companies are accelerating their entry into Indonesia across various sectors. The Indonesian parliament's ratification of the Korea-Indonesia CEPA and RCEP on the 30th of last month is also a positive factor.

The first session will begin with an opening address by Lee Jongseop, Head of KOTRA's Southeast Asia and Oceania Regional Headquarters. This will be followed by a welcome speech from Agus Tjahajana Wirakusumah, Special Advisor to the Indonesian Minister of Energy, congratulatory remarks by Park Taeseong, Ambassador of the Republic of Korea to Indonesia, and Bernardino M. Vega, Vice Chairman of the Indonesian Chamber of Commerce and Industry.

Subsequently, policymakers, experts, and Korean companies with representative cooperation cases in future new industries such as carbon neutrality (energy), healthcare, and digital sectors from both countries will participate as speakers. They will discuss ▲ directions and significance of the Korea-Indonesia mutually beneficial cooperation partnership ▲ trends, prospects, and cooperation opportunities in future new industries ▲ sharing of excellent cooperation cases by Korean companies.

Keynote speaker Dr. Shin Yunseong of the Korea Institute for Industrial Economics and Trade said, "The ratification of the Korea-Indonesia CEPA will establish a cooperative system between the two countries to overcome the global supply chain crisis caused by COVID-19," adding, "Korea has continued investments in advanced industries such as electric vehicles and secondary batteries in Indonesia even during the COVID period, and will work together for Indonesia's sustainable development through ESG (environment, social, governance)."

At the showcase business consultation, 48 domestic innovative technology companies in electric vehicles, energy, medical devices, and digital content sectors will participate, exhibiting product technologies and conducting one-on-one business consultations with 85 potential cooperation partners including leading Indonesian companies, project clients, and venture capitalists.

Additionally, KOTRA, in collaboration with Korea Electric Power Corporation, will provide IR (Investor Relations) opportunities targeting major energy sector clients such as the Indonesian Ministry of Energy and the state electricity company to three innovative technology companies in the carbon neutrality field. The featured companies are KevinLab (energy management), IonEarth (mobile energy storage devices), and Nanum Energy (solar power generation control technology).

As a side event, KOTRA plans to operate an Expo promotion booth to explain and seek support for Korea's intention to host the '2030 Busan World Expo' to key attendees such as the Indonesian Ministry of Energy and the National Development Planning Agency.

Kim Taeho, Head of KOTRA's Economic and Trade Cooperation Headquarters, said, "To expand the mutually beneficial relationship between the two countries, it is important to diversify cooperation into new industries in response to common challenges such as climate change, pandemics, and supply chain crises," adding, "The event will focus on actively discovering overseas field opportunities to respond to the recent trade deficit and support the short-term export expansion of our companies."