President Jokowi Meets South Korean Entrepreneur Delegation At The Palace

The Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalila runs at the Jakarta presidential palace complex on Monday (15/5/2023). (ANTARA/Desca Lidya Natalia)

JAKARTA - President Joko Widodo met with a delegation of South Korean businessmen led by South Korean Agriculture Minister Chung Hwang-Keun to discuss trade and investment issues between the two countries.

"The two of us and the Ambassador (Gandi Sulistiyanto) accompanied President Jokowi to receive a visit by a delegation from Korea totaling 16 people. In the talks the two countries agreed to improve and continue diplomatic relations which will soon reach 50 years," said the Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalila's capital at the President's office, Jakarta as reported by ANTARA, Monday, May 15.

Members of the delegation consisted of the Chairperson of the South Korean Parliament's Unification and Foreign Affairs Committee, three members of the South Korean Parliament, the Deputy Minister of Trade, Investment, and Economy, and leaders of 9 South Korean conglomerates including LG Energy Solution, Hyundai, CJ Group and LS Group.

"The two countries also believe that the trade balance still needs to be improved. Earlier, the President also asked for access to exports of commodities, especially food commodities, oranges, and other superior commodities," said Bahlil.

According to Bahlil, the South Korean delegation requested that Indonesia and South Korea's diplomatic relations not only in a political context but also in an economic context.

"The deputy minister for the economy said that next year Indonesia will become the first Southeast Asian country to produce an electric car ecosystem whose batteries come directly from Indonesia, namely next year," added Bahlil.

Meanwhile, President Jokowi also asked South Korean businessmen to actively participate in investing in the Indonesian Capital City (IKN).

"We report to the President that all investments from Korea to Indonesia are well managed, including Lotte (in Cilegon) with 60 percent progress which has been stalled for 6 years and now progress is 60 percent," said Bahlil.

PT Lotte Chemical Indonesia (LCI) investment project in the "petrochemical" sector in Cilegon, Banten. The project had stalled for 5 years and only on January 7, 2022, the project was officially carried out through the virtual signing of an agreement between Vice Chairman & CEO of Lotte Group Chemical Business Sector Kim Gyo Hyun from Seoul, South Korea, and Minister Bahlil.

"Especially for LG's investment, it has also been reported that everything will work this year for the cathode and 'battery cell' issues. God willing, this year it will be completed and the mine will also follow suit and infrastructure can be accelerated in parallel," added Bahlil.

Furthermore, the South Korean delegation asked President Jokowi for an explanation regarding the climate protection package and social package or Inflation Reduction Rate (IRA) worth USD 430 billion which was passed by the United States Congress in August 2022.

The package is intended to help fight inflation and reduce energy prices and tackle climate change.

The package offers massive tax discounts for US companies willing to invest in clean energy, including subsidizing domestically produced electric vehicles, batteries, and other renewable energy projects.

The Korean government also asked the President for a special agreement regarding our agreement with America, the IRA because it concerns the 'supply chain' and our side already conveyed the global condition of the tug-of-war of interests where America and Europe are starting to think that there is one country that invests too much in one place will be subject to 'dumping' tax and earlier we have started looking for the best solution.

"But Indonesia is in a position where it cannot be dictated by any country, we are in a position where it is open, we can be friends with everyone," Bahlil explained.

Bahlil said that South Korean lawmakers even asked about President Jokowi's secrets, thus obtaining public satisfaction of up to 82 percent based on the survey results.

The president's answer was very simple, that is, Indonesia has more than 500 regencies/cities and more than 17,000 islands. The president spends 3 times a week in the field to hear directly what the problems are and make policies.

"I see there is a new model that maybe my friends in Korea can emulate," said Bahlil.

Meanwhile, the Indonesian Ambassador to South Korea Gandi Sulistiyanto said he had reported in detail all Korean investments in Indonesia.

"Thank God it can be resolved, 1-2 technical problems are being resolved in talks but through Minister Bahlil nothing is impossible, all technical problems have a solution," said Gandi.

Gandi said the delegation was not the first delegation of South Korean businessmen he had brought to Indonesia since taking office 15 months ago.

"2 months ago, I brought 57 South Korean entrepreneurs directly to IKN, then also for good infrastructure development in Jakarta, for example, the 4th MRT and LRT made by Korean investors," said Gandi.

He admitted that he had also brought in 12 large businessmen in the banking sector from South Korea to finance construction companies that would build IKN.

"This time those who came were for agriculture, 'smart farming' as well as 'hi-tech' chaebols, all of whom were satisfied and amazingly accompanied by the 'national assembly' or the South Korean DPR, including previously the presidential candidate in Korea who finally joined the President of South Korea now," Gandhi added.

Private sector leaders from South Korea who attended the audience with the President of the Republic of Indonesia were Sohn Kyung Shik (Chairman of the Korean Entrepreneurs Federation/CJ Group Chair), and Koo Ja-Eun (Chairman of the LS Group).

Then Choo Hyeongwook (CEO of SK E&S), Hyun Shingyoon (CEO of LG CNS), Park Seung Hee (President of Samsung Electronics), and Robert Seung (CEO of Tse Group).

Next Lee Youngtack (President of Hyundai Motor ASEAN HQ), Lee Bang Soo (President of LG Energy Solution), and Sun Kyung Hoon (Sun Hospital).