Here's Why South Korea Is Keen on Investing in Indonesian Shipyards
Here’s Why South Korea Is Keen on Investing in Indonesian Shipyards
Reporter
September 4, 2026 | 09:43 am
TEMPO.CO, Jakarta - South Korea is eyeing Indonesia’s shipyard industry. The investment commitment in the shipbuilding and repair sector in Indonesia, which is part of the Special Comprehensive Strategic Partnership (SCSP), was discussed during the Indonesia-South Korea High-Level Conference in April 2026.
Uhm Taeho, the Political Section Chief and Counselor at the South Korean Embassy in Indonesia, said shipyards are among the sectors that bolstered the country’s negotiations with the United States. “From Hyundai Shipyard, Hanwha Ocean, to Samsung Heavy Industries, we have the best shipyard companies with state-of-the-art technology,” during the Indonesia-Korea Next Generation Journalist Network (IKJN) workshop on Wednesday, August 26, 2026.
According to him, archipelagos like Indonesia have great potential in shipbuilding, including for the development of its workforce. In a discussion held by the Foreign Policy Community of Indonesia (FPCI) and the Korea Foundation, Taeho called for new collaboration opportunities to strengthen the economic relationship between Indonesia and South Korea.
“Our expertise and Indonesia’s needs converge in this shipbuilding industry,” he said.
An official report from the Directorate General of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) at the Ministry of Industry shows that Indonesia has approximately 342 active shipyards as of the third quarter of 2025. The total capacity of all these shipyards is around 1 million Deadweight Tonnage (DWT) per year for new shipbuilding, and 12 million DWT per year for repairs.
Taeho claimed that several Korean companies have visited Indonesia to study the development opportunities in this industry. Shipyard operators from South Korea have also collaborated with other countries in Asia, such as the Philippines and Vietnam. They are exploring the potential with India, as well as Indonesia.
SCSP implementation also became the primary focus during the bilateral meeting between the Indonesian Foreign Minister, Sugiono, and his South Korean counterpart, Cho Hyun, on the sidelines of the 59th ASEAN Foreign Ministers’ Meeting/Post Ministerial Conferences (AMM/PMC) in Manila, the Philippines, on July 22, 2026.
“Indonesia is ready to continue to work closely with the Republic of Korea to produce concrete cooperation,” Sugiono said in a written statement.
At that time, Sugiono and Cho Hyun agreed to accelerate the implementation of various commitments that had been approved by the leaders of both countries. Their agreement includes cooperation in the defense, energy, and investment sectors. Cho Hyun also emphasized that he would push South Korean companies to invest in the shipyard sector in Indonesia.
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