South Korea and Indonesia discuss expanding cooperation in mineral supply chain development

South Korea’s industry ministry engaged in discussions with Indonesia to enhance bilateral cooperation in mineral supply chain development. Both nations aim to broaden economic ties and address global challenges like greenhouse gas emissions.

In a bid to enhance bilateral cooperation in the development of a stable supply chain for essential minerals, South Korea’s industry ministry disclosed on Wednesday that it had engaged in discussions with Indonesia. Industry Minister Ahn Duk-geun held talks with Airlangga Hartarto, Indonesia’s coordinating minister for economic affairs, in Seoul, aiming to broaden economic ties between the two nations, as reported by the Ministry of Trade, Industry and Energy.

The meeting between South Korea and Indonesia underscored mutual agreement on the expansion of collaborative efforts, encompassing the establishment of a dependable supply chain for vital minerals, alongside addressing global imperatives such as reducing greenhouse gas emissions.

Highlighting the significance of collaboration with Jakarta, South Korea’s ministry emphasized Indonesia’s consistent annual economic growth, hovering around 5 per cent, buoyed by its substantial mineral reserves.

Minister Ahn also advocated for sustained attention from the Indonesian government toward South Korean enterprises operating within the Southeast Asian nation, acknowledging their substantial contributions to Indonesia’s economic advancement.

Specifically, Ahn urged Indonesia to contemplate enhancing incentives for locally-produced electric vehicles by South Korean firms, thereby fostering a conducive environment for the growth of this burgeoning sector.

Both countries pledged to maximize the utilization of the bilateral Comprehensive Economic Partnership Agreement (CEPA), in addition to leveraging global platforms like the Regional Comprehensive Economic Partnership (RCEP), to further fortify their economic ties, the ministry revealed.

The CEPA, characterized by its emphasis on broadened economic cooperation and exchanges beyond market access, came into force in January 2023. This collaborative effort signifies a strategic step towards fostering sustainable economic development and mutual prosperity between South Korea and Indonesia.