South Korea and Indonesia need to further strengthen cooperation to build an advanced industrial ecosystem for electric vehicles, batteries, and more.
The Korea Chamber of Commerce and Industry (KCCI) released a report titled "Current Status and Challenges of Korea-Indonesia Economic Cooperation" on the 6th. The trade volume between South Korea and Indonesia increased 140-fold from $185 million at the time of establishing diplomatic relations in 1973 to $26 billion last year. South Korea's investment in Indonesia last year was $1.787 billion, which is about 2.9 times the $618 million recorded in 2013.
The report analyzed the need to utilize Indonesia, which has the world's largest nickel reserves, as a strategic base in the global supply chain. It emphasized the necessity to secure supply chain stability by establishing all processes from nickel mining and processing, a key raw material for electric vehicle batteries, to battery cell manufacturing.
The report also stressed that both countries should cooperate to create an advanced industrial ecosystem for electric vehicles and batteries, including raw material and intermediate goods supply, battery recycling, charging infrastructure development, and training of maintenance personnel. Furthermore, it added that cooperation should be strengthened in infrastructure construction related to Indonesia's new capital city development, smart city construction, and renewable energy sectors.
Park Jun, head of the Asia Trade Team at KCCI, said, "Indonesia is the world's fourth most populous country and South Korea's 13th largest trading partner. We hope to expand cooperation starting this year, which marks the 50th anniversary of diplomatic relations and the enforcement of the Korea-Indonesia Comprehensive Economic Partnership Agreement (CEPA)."
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