Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Korea to share experience on capital relocation with Indonesia
President Yoon Suk-yeol speaks as Indonesian President Joko Widodo listens during their press conference at the former's office in Yongsan District, Seoul, Thursday. Yonhap
By Nam Hyun-woo
Two leaders agree to strengthen partnership in supply chain, economic security
By Nam Hyun-woo
President Yoon Suk-yeol and Indonesian President Joko Widodo agreed to work together in the Southeast Asian country's ongoing project to relocate its capital during their summit in the presidential office in Seoul, Thursday.
The two sides also pledged to enhance their cooperation in the areas of supply chain, economic security and a joint fighter jet program.
“We agreed to cooperate closely in President Jokowi's policy priority to relocate Indonesia's capital,” President Yoon said during a joint press conference held after the summit, referring to the Indonesian president by his popular nickname. “I believe South Korea's experience of constructing Sejong City will be a good reference for Indonesia.”
Sejong, located 144 kilometers south of Seoul, is a planned city founded in 2012 to ease congestion in the capital. It is currently serving as an administrative capital of the country, with most government ministries being located in a giant government complex there.
“Through today's summit, the two countries revised the memorandum of understanding (MOU) on (Indonesia's) capital relocation,” Yoon said. “With this, the revised MOU will be the foundation for South Korean companies to contribute in establishing infrastructure, e-government and smart city construction for the new Indonesian capital.”
Indonesia first announced in 2019 the relocation of its capital from Jakarta to a new capital on the island of Borneo, and announced in January this year that the capital will be called Nusantara.
The revised MOU has its crux in the two countries' cooperation in design, development and urban planning for the project, as well as handling infrastructure facilities such as roads, bridges, water resources and dams. This will expand Korean builders' and other infrastructure companies' entry into the Indonesian market, Korea's presidential office said.
President Yoon Suk-yeol shakes hands with Indonesian President Joko Widodo during their summit at the former's office in Yongsan District, Seoul, Thursday. Yonhap
President Jokowi arrived in Korea on Wednesday for a two-day official visit. Before meeting Yoon on Thursday, he met with Korean business leaders, including Hyundai Motor Group Executive Chair Chung Euisun and POSCO CEO Kim Hag-dong, to share ideas on Korean companies' investments in Indonesia and participation in the new capital project.
“Indonesia is endowed with rich mineral resources, including nickel, which is an important raw material for our cutting-edge industry,” President Yoon said.
The two leaders also explored ways to deepen bilateral economic cooperation and agreed on building a strategic coalition in the fields of electric vehicles and batteries.
“Through the meeting with President Yoon, I have asked for South Korea's investment cooperation in setting up Indonesia's electric vehicle ecosystem,” Jokowi said. “Also, we will strengthen our cooperation in water supply system and smart city construction in relation with the construction of Nusantara.”
Yoon said that he and his Indonesian counterpart agreed to cooperate closely on the two countries' shared interests within the recently launched Indo-Pacific Economic Framework (IPEF), noting that they shared the view that the prompt implementation of the Korea-Indonesia Comprehensive Economic Partnership Agreement and the Regional Comprehensive Economic Partnership will contribute to expanding bilateral cooperation.
Both Korea and Indonesia are members of the IPEF, a U.S.-led economic bloc aimed at ensuring supply chain resilience.
On defense, the two leaders celebrated the successful first test flight of the KF-21 fighter jet, developed jointly by the two countries, and reaffirmed their commitment to cooperating closely until the completion of the project.
“We have reassured the two countries' commitment to enable the joint fighter jet project to progress until the last moment,” Yoon said, adding he and Jokowi have agreed on further bilateral defense cooperation.
The summit drew keen attention to whether the leaders would discuss Indonesia's overdue payment for the fighter jet program, but the leaders did not mention the issue in their joint press conference.
Under the two countries' deal, Jakarta was supposed to fund 1.6 trillion won ($1.23 billion), amounting to 20 percent of the total development cost of 8.8 trillion won, but the Southeast Asian country has so far failed to pay 800 billion won it promised as of this month, citing financial problems.
After the summit, Yoon and Jokowi had an official dinner, with the business leaders of the two countries, including Korindo Group Chairman Seung Eun-ho.