Indonesia–South Korea Sign MoUs Worth Rp 173 Trillion, Energy Sector as Key Focus
The Indonesian government is strengthening economic and energy diplomacy through the signing of 10 memoranda of understanding (MoUs) with South Korea worth Rp 173 trillion, with the energy sector as one of the main focuses of cooperation.
This agreement not only reinforces the direction of national economic transformation but also positions energy as an important foundation in driving sustainable growth amid global dynamics.
“For me, this first state visit is very important. I consider Korea a close friend of Indonesia and I want to enhance this cooperation,” said Indonesian President Prabowo Subianto during the state visit in Seoul on Wednesday (1/4/2026).
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the total value of the agreements reaches 10.2 billion US dollars or approximately Rp 173 trillion.
“In that meeting, MoUs were signed with a value of 10.2 billion USD or approximately Rp 173 trillion,” said Airlangga.
The agreements also include the establishment of a comprehensive strategic dialogue and strengthening of advanced economic cooperation or 2.0, including the development of critical mineral partnerships as well as the utilisation of technologies such as artificial intelligence for the health sector and human development.
Cooperation is also expanded to the development of renewable energy, hydrogen, nuclear, and smart grids, which are considered important for accelerating the national energy transition.
In line with that, support also comes from the Indonesian House of Representatives (DPR RI). Commission XII of the DPR RI, which handles energy, views the government’s step as a strategic effort to strengthen energy diplomacy and accelerate the transformation of the national energy sector.
Member of Commission XII of the DPR RI from the Golkar Party Faction, Alfons Manibui, expressed his support for the government’s steps in strengthening energy diplomacy through this cooperation.
“This step shows that Indonesia is increasingly active in playing a strategic role in global energy diplomacy, while also strengthening the policy direction towards a measured and sustainable energy transition,” said Alfons.
He assessed that this collaboration is also relevant to Indonesia’s needs in developing critical minerals, especially nickel.
“This momentum must be utilised to ensure that Indonesia not only becomes a supplier of raw materials but is able to enter the battery industry and global electric vehicle value chain,” he emphasised.
Amid global uncertainties, including potential disruptions to energy supply chains due to geopolitical conflicts, this cooperation is seen as a strategic step to strengthen national energy resilience.
“This cooperation must be able to strengthen Indonesia’s energy sovereignty, both in terms of supply, technology, and economic value added, so that Indonesia is not vulnerable to global energy fluctuations,” he added.
As a closing, he hopes that the implementation of this cooperation can run optimally while still prioritising national interests, including strengthening domestic industry and balancing energy transition and energy resilience.
Overall, this cooperation between Indonesia and South Korea is expected not only to encourage increased investment but also to strengthen Indonesia’s position on the global energy map while accelerating value-added-based economic transformation.