Korea, Indonesia to boost energy security cooperation

President Lee Jae Myung holds hands with Indonesian President Prabowo Subianto before their summit at Cheong Wa Dae in Seoul, Wednesday. Yonhap

The leaders of Korea and Indonesia agreed to expand their bilateral partnership in energy security and defense, Cheong Wa Dae said Wednesday.

The two nations also signed memorandums of understanding (MOUs) in 16 sectors, including critical minerals and renewable energy, in line with the summit between President Lee Jae Myung and Indonesian President Prabowo Subianto during the latter’s state visit to Seoul.

The much-awaited deal on Indonesia’s purchase of Korean-made KF-21 fighter jets, however, was not announced this time, with expectations of the announcement in the coming months.

Lee told Subianto that Indonesia’s stable supply of liquefied natural gas (LNG), coal and other key energy sources is “extremely reassuring” amid disruptions to global energy supply chains due to the conflict in the Middle East.

“Our partnership is a blessing to both nations in times of global uncertainty and multiple challenges … It is crucial that we expand cooperation in energy security to minimize the impact of this crisis on our economies and people’s lives,” Lee said.

In line with this, the two countries included critical minerals, clean energy, as well as carbon capture and storage (CCS) — all related to energy cooperation — among the MOUs signed after the summit at Cheong Wa Dae.

Lee said the summit provided "a crucial impetus to make bilateral relations even more extraordinary,” referring to the elevation of Seoul-Jakarta ties to a "special comprehensive strategic partnership," upgraded from the "special strategic partnership" signed in 2017.

“I am truly eager to see what achievements our next steps with Indonesia will bring,” Lee added.

A summit between President Lee Jae Myung and Indonesian President Prabowo Subianto takes place with officials from both countries in attendance at Cheong Wa Dae in Seoul, Wednesday. Yonhap

Subianto responded that the Korea-Indonesia partnership is even more important with global uncertainty increasing, adding that the two countries are “complementary to each other.”

“Korea has advanced industrial and technological capabilities, while Indonesia has abundant resources and a large market," he said. “We must continue to strengthen our ties, and I believe it is necessary to elevate the special strategic partnership established in 2017 to a higher level, expanding it into a more comprehensive collaboration.”

Noting the two nations’ common ground as middle powers, Lee said they can “contribute together to the international community.” Subianto emphasized that “maintaining peace and stability requires strong security and defense,” a point on which both leaders agreed.

Lee also noted Indonesia is an important partner in Korea's defense industry, referring to the joint development of the KF-21 fighter jet. In 2015, the two nations formed a partnership to develop the jet, with Jakarta funding 20 percent of the project in exchange for technology transfer. But after payments were repeatedly delayed, they decided to cut Jakarta's contribution and also lower the level of technology transfer.

Beyond the technology transfer, it has been expected in recent weeks that Indonesia would buy 16 IF-21 jets, the Indonesia-adapted variant of the KF-21. However, the much-anticipated export deal was not announced during the summit.

The MOUs address critical minerals, digital technological development, artificial intelligence-based health and medical services, clean energy, CCS, the offshore plant service industry and intellectual property protection.

The summit was followed by an official luncheon honoring Indonesia’s religious and cultural traditions while highlighting the harmony between the two nations.

The menu featured Korean dishes made with halal ingredients, enhanced with sambal sauce and gado-gado salad to reflect Indonesian tastes, along with Mandheling coffee, symbolizing the unity of the two countries.

Meanwhile, Subianto received the Order of Mugunghwa, the highest medal of honor in Korea, in recognition of his contributions to supporting the activities of Korean companies operating in Indonesia and promoting friendly bilateral relations.