Indonesia and South Korea Agree on US$10.2 Billion Investment
The Indonesian government and South Korea have agreed on 17 Memoranda of Understanding (MoUs) with a total investment value of US$10.2 billion at the Indonesia-Korea Business Forum in Seoul on Wednesday (1/4/2026). This cooperation focuses on strengthening the energy sector, industrial downstreaming, and the development of the digital economy in both countries.
This major agreement was reached at the forum titled “Partnership for Resilient Growth” held at the Shilla Hotel. According to Investortrust, the signing of the dozen MoUs was witnessed by the Coordinating Minister for Economic Affairs of Indonesia, Airlangga Hartarto, representing President Prabowo Subianto.
Data shows that South Korea is a crucial economic partner for Indonesia. Bilateral trade value in 2025 exceeded US$18 billion, while investment realisation over the past four years has reached US$28.1 billion.
The General Chairman of Kadin Indonesia, Anindya Bakrie, emphasised the direction of national economic policy at the forum.
“Under the leadership of President Prabowo Subianto, Indonesia is promoting inclusive growth, industrial transformation, and stronger global engagement,” said Anindya Bakrie, General Chairman of Kadin Indonesia.
Anindya assessed that this synergy has a systemic impact on the domestic economic structure through strengthening foreign capital and creating new job opportunities.
“This is potential for increasing foreign direct investment, creating jobs, and boosting trade that can bring in foreign exchange,” continued Anindya Bakrie, General Chairman of Kadin Indonesia.
In addition to industrial aspects, diplomatic relations between the two countries are also strengthened through the penetration of Korean culture in Indonesian society, which forms the basis for creative industry collaboration.
“For fans of Korean dramas and K-pop, that is a real example of cooperation in the creative industry. In addition, collaboration is also developing in industrialisation, food security, and energy sectors,” explained Anindya Bakrie, General Chairman of Kadin Indonesia.
Optimism is still emphasised by Kadin Indonesia despite the current global economic conditions remaining in an uncertain phase.
“Hopefully, amid the current global uncertainty, we can continue to find opportunities so that Indonesia remains advanced and the people become increasingly prosperous,” concluded Anindya Bakrie, General Chairman of Kadin Indonesia.
Details of the 17 MoUs include strategic projects such as battery material development, low-carbon technology, and carbon capture and storage (CCS). The forum also facilitated cooperation between Danantara and various South Korean financial institutions to support accelerated sustainable industrialisation.
This business meeting is part of President Prabowo Subianto’s state visit to South Korea. Other main agendas include optimising the Indonesia-Korea Economic Partnership Agreement (IK-CEPA) to strengthen the long-standing strategic partnership.