Jakarta. President Prabowo Subianto’s working visit to South Korea marks a new phase in strengthening bilateral economic ties, with a primary focus on boosting investment, as business agreements worth $10.2 billion (Rp 173 trillion) were secured.

The agreements were formalized through a series of memoranda of understanding (MoUs) between business players, reflecting strong investor confidence and opening broad opportunities for the development of strategic sectors and Indonesia’s future economic growth.

Speaking after representing the president at the Indonesia-Korea Partnership for Resilient Growth forum in Seoul on Wednesday, Chief of Economic Affairs Minister Airlangga Hartarto said the investment commitments complement the outcomes of Prabowo’s earlier visit to Japan, which secured $23.6 billion (Rp 401 trillion) in pledges.

“This is a very significant figure, as Indonesia remains attractive to investors from both Japan and Korea despite the current geopolitical uncertainty. Japan ranks third in investment and trade, while Korea ranks seventh. Going forward, both countries also expect that with Indonesia having a sovereign wealth fund, Indonesia can become a co-investor,” Airlangga said.

Investment cooperation with South Korea spans a wide range of sectors, including energy and green transition, solar power development, carbon capture and storage (CCS), and renewable energy. Partnerships also extend to industry and manufacturing, covering steel, battery development, and environmentally friendly transportation.

In addition, collaboration includes the digital economy and artificial intelligence (AI) development, aimed at strengthening national industrial competitiveness in the digital transformation era.

The investment scope also covers property and infrastructure, including the development of the Bumi Serpong Damai area, as well as business partnerships between the Indonesian Chamber of Commerce and Industry and the Korea Chamber of Commerce and Industry. The collaboration is designed to accelerate business realization, particularly in strengthening the battery supply chain and technology-based manufacturing investment.

In this context, continued investment from POSCO and investment interest from Lotte Group, including potential collaboration with Indonesia’s sovereign wealth fund Danantara, are seen as key elements in deepening bilateral ties.

Meanwhile, investment cooperation with Japan covers sectors such as energy and energy transition, including oil and gas development with a focus on the Masela Project, as well as industrial strengthening and downstreaming to increase domestic value-added.

Collaboration also extends to financial services and inclusion through synergy between Sumitomo Mitsui Banking Corporation and Pegadaian, supported by institutional investment involving Japan External Trade Organization (JETRO) and Kadin Indonesia to promote business partnerships.

Creative industries and manufacturing are also part of the cooperation focus to expand growth sources and enhance national competitiveness.

“This means that the President’s visits to Japan and South Korea have resulted in investment commitments totaling Rp 574 trillion,” Airlangga said.

He also underscored the government’s commitment to improving the investment climate through systematic efforts to resolve business constraints, ensuring that obstacles can be addressed effectively and that project realization can proceed optimally while providing greater certainty for investors.