Jakarta. Chief Economic Affairs Airlangga Hartarto requested South Korea to assist in negotiating with the United States to open its market for electric vehicles (EVs) manufactured in Indonesia.

"I hope that the EV ecosystem can deepen, and with South Korea's help, we can discuss with the US to ensure that the Inflation Reduction Act (IRA) opens the market for products resulting from the LG and Hyundai collaboration," said Airlangga Hartarto on Friday.

Hyundai Motor Group and LG Energy Solution have invested in Indonesia and are currently building an electric vehicle battery factory in Karawang, West Java.

In addition to the Hyundai and LG investments, Airlangga noted several other ongoing collaborations between Indonesia and South Korea, such as the expansion of Lotte's petrochemical plant and the construction of the Krakatau Steel-Posco steel cluster.

However, Airlangga emphasized that some cooperation agreements still need to be pushed for implementation. These include expanding market access for Indonesian micro, small, and medium enterprises through South Korean e-platforms, implementing carbon capture and storage (CCS), producing hydrogen/ammonia energy, and developing hydropower plants.

He also expressed his hope that South Korean Trade, Industry, and Energy Minister Ahn Duk Geun would help strengthen and deepen industrial, trade, and energy transition cooperation between the two countries.

"We believe our cooperation will continue to increase and develop," he said.

During the meeting, Airlangga also invited Ahn to attend the 3rd Joint Committee on Economic Cooperation (JCEC) meeting in Jakarta in July 2024.

Meanwhile, Ahn discussed potential collaboration in developing nuclear power plants through the Korea Atomic Energy Research Institute (KAERI). The institute has developed safe small modular reactor (SMR) technology with a lower carbon footprint compared to conventional reactors. SMRs can provide an alternative solution for supplying electricity, especially in remote or isolated areas.

The trade relationship between Indonesia and South Korea has entered its fifth decade. The Coordinating Ministry for Economic Affairs reported that the total bilateral trade value between the two countries reached US$ 20.8 billion in 2023.

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