Celebrating 50 years of Indonesia-South Korean bilateral relations
By Simon Hutagalung
Considering the rising geopolitical tensions in the Indo-Pacific region, South Korea and Indonesia are looking forward to closer economic and political cooperation as they commemorate their 50th diplomatic anniversary. The 50th anniversary of their union was celebrated virtually on Jan. 26. Retno Marsudi, the foreign minister of Indonesia, described the two countries as “unique strategic partners” whose trade has grown rapidly in recent years. The two countries broke their previous trade record in 2022 with $20.57 billion.
In 2017, the presidents of South Korea and Indonesia, Moon Jae-in and Joko Widodo, decided to transform their existing strategic partnership into a “special strategic partnership” with a focus on four key areas: people-to-people exchanges; defense; international relations, regional and global cooperation; and the growth of infrastructure and trade. Both nations have launched a number of plans and agreements over the past five years in an effort to enhance integration and promote closer cooperation.
A free trade pact known as the Indonesia-Korea Comprehensive Economic Partnership Agreement (IK CEPA) was negotiated in 2019 to strengthen their economic partnership. South Korea and Indonesia commemorated the 50th year of diplomatic relations on Jan. 1, 2023. The agreement will remove import tariffs on 95.5 percent of Indonesian exports to South Korea and 93 percent of South Korean exports to Indonesia, exceeding the tariff reductions outlined in the ASEAN-Korea Free Trade Agreement.
The bilateral agreement will significantly increase market access because it will partially remove tariffs on goods like steel, cars, and auto parts as well as agricultural and fishery goods. The negotiation process has resulted in closer ties between the two nations, with Indonesia now being South Korea's second-favorite ASEAN nation for foreign direct investment (FDI). Because of South Korea's investments in Indonesia, Nusantara in New Kalimantan has grown by about $6.37 billion and about 58,000 new jobs have been created as a result.
Indonesia and South Korea share the same values as the G20 and MIKTA members in terms of democracy, human rights, a free market, and the freedom to travel without interference. They have similar views on regional and global dynamics as well. The ASEAN Outlook on the Indo-Pacific and South Korea's Strategy for a Free, Peaceful, and Prosperous Indo-Pacific Region are the two countries' respective Indo-Pacific strategies that they are using to carefully navigate the escalating rivalry between China and the United States in the Indo-Pacific.
The crisis in Myanmar, China's assertiveness in the South China Sea and North Korea's nuclear threats are the three key dynamics that both countries must focus on in order to create peace and stability in the region. With South Korea's strong support for Indonesia's ASEAN presidency in 2023, if both parties ask for a mediator, the North Korean nuclear threat could be diminished significantly. As a signatory to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), Indonesia would also try to dissuade South Korea from acquiring nuclear weapons, which could endanger the Korean Peninsula and the entire region.
South Korea, on the other hand, should use its diplomatic abilities to resolve the conflict between its two major trading partners due to the growing rift between Indonesia and China in the North Natuna Sea and the growing assertiveness of China. South Korea has stayed out of the South China Sea conflict in order to safeguard its supply lines and gain economic advantages. However, it must not ignore the widening gap in the area.
In Myanmar, the military has extended the state of emergency for an additional six months, and both Indonesia and South Korea must cooperate to help the region resolve the chaos there.
In conclusion, the 50-year diplomatic relationship between Indonesia and South Korea is flourishing, despite the rising geopolitical tensions in the Indo-Pacific region. Finally, in the Korean Peninsula crisis, Indonesia has the potential to significantly lessen the North Korean nuclear threat as a mediator because it has good diplomatic relations with South Korea and North Korea.
Simon Hutagalung is a graduate of the City University of New York and received his master's degree in political science and comparative politics.