Prabowo's Souvenir: Indonesia and South Korea Agree on Green Energy Business

Amid escalating global geopolitical pressures, Indonesia is strengthening its strategic partnerships with East Asian countries, including South Korea. This reinforcement is aimed at bolstering the foundations of sovereignty and national energy independence. Moreover, fluctuations in fossil fuel prices due to conflicts in the Middle East are prompting 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 nations to engage in clean energy business. As a follow-up to this commitment, the 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 Memorandum of Understanding (MoU). 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 (1/4/2026) local time. “This MoU is important as a foundation for both parties in promoting energy transition, particularly clean energy according to each country’s capabilities. This (renewable energy) is good for our future. We must not delay its utilisation any longer,” stated Bahlil shortly after the MoU announcement, quoted from a written statement on Wednesday (1/4/2026). He explained that the long-standing relationship between Indonesia and South Korea serves as strong capital in building collaboration to explore the potential opportunities of both parties. “South Korea is an old friend of Indonesia. So we know each other’s strengths and energy potentials. If we complement each other, it can strengthen energy independence in line with the President’s directives,” he said. Within the framework of the MoU, 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 includes 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 being promoted, including smart electricity networks, electric vehicle charging stations, and the battery industry from upstream to recycling. “This also includes support for integrated energy systems on independent energy islands so that the benefits of clean energy can be felt more widely, including in remote areas,” added Bahlil. Bahlil hopes that through this cooperation, it can facilitate technology transfer, increase investment value, and promote 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. “South Korea has extraordinary industrial and technological capabilities, while Indonesia has abundant resources and a large market,” said President Prabowo. In agreement, President Lee also conveyed that Indonesia and South Korea have elevated their bilateral relations to the highest level. Indonesia, according to Lee, 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 friends who support each other. Indonesia is the top foreign investment destination for Korean companies,” said Lee. It is known that the electric vehicle battery factory owned by Hyundai LG Indonesia (HLI) Green Power has been operational in Karawang, West Java, since July 2024. The first phase of this project has an investment value of US$1.1 billion, covering EV battery production of 10 Giga Watt hours (GWh), equivalent to 32.6 million battery cells, sufficient to power around 150,000 electric vehicles.