Minister Bahlil and South Korean Minister Agree on Clean Energy Cooperation
South Korea is a long-time friend of Indonesia. Therefore, we both know each other’s strengths and energy potential. If we complement each other, it can strengthen energy independence in line with the President’s directives.
Jakarta (ANTARA) - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia and South Korea’s Minister of Climate, Energy, and Environment Kim Sungwhan have agreed on clean energy cooperation in the form of a mutual understanding memorandum (MSP) or memorandum of understanding (MoU).
“This MSP is important as a foundation for both parties in promoting energy transition, particularly clean energy according to each country’s capabilities. (Renewable energy) this is good for our future. We must not delay its utilisation any longer,” said Minister Bahlil shortly after the MSP announcement, as quoted from his statement in Jakarta on Wednesday.
The announcement of this agreement took place during the meeting between President Prabowo Subianto and South Korean President Lee Jae-myung at the Blue House in Seoul, South Korea, on Wednesday morning local time.
Amid rising geopolitical turbulence and the threat of global crises, Indonesia continues to strengthen strategic partnerships with East Asian countries, including South Korea.
Moreover, fluctuations in fossil fuel prices due to conflicts in the Middle East are also driving the Indonesian Government and South Korea to remain committed to maintaining energy supply stability in their respective countries.
This situation has given rise to an agreement between the two countries to engage in clean energy business.
Bahlil explained that the long-standing relationship between Indonesia and South Korea serves as strong capital in building collaboration to explore opportunities from both parties’ potentials.
Within the framework of the MSP, cooperation between the two countries is directed towards several strategic sectors, starting from the development of renewable energy such as solar, wind, and geothermal, to the utilisation of future energy like nuclear and hydrogen.
This collaboration also covers strengthening energy storage systems (energy storage system/ESS), energy efficiency, bioenergy, and waste processing into energy.
On the other hand, the development of supporting infrastructure is also promoted, including smart electricity grids, electric vehicle charging stations, and the battery industry from upstream to recycling.
Bahlil hopes that through this cooperation, it can facilitate technology transfer, increase investment value, and encourage the development of competitive human resources.
In the meeting with President Lee, President Prabowo stated that bilateral relations between Indonesia and South Korea are very important, especially in the current uncertain global conditions.
South Korea and Indonesia share the same commitments and aim for broader cooperation.
In line with that, President Lee also conveyed that Indonesia and South Korea have elevated bilateral relations to the highest level.
Indonesia, according to the South Korean President, plays a stable role as a key energy source, including liquefied natural gas (LNG) and coal.
“For more than 50 years of diplomatic relations, Indonesia and South Korea have been reliable partners and trusted friends who support each other. Indonesia is the top foreign investment destination for Korean companies,” said Lee.
The first phase of this project has an investment value of US$1.1 billion, covering EV battery production of 10 gigawatt-hours (GWh), equivalent to 32.6 million battery cells and sufficient to power around 150,000 electric vehicles.