Indonesia, South Korea Seal US$102 Billion Cooperation Deals Across Key Sectors

TEMPO.CO, Jakarta - Cooperation between Indonesia and South Korea has strengthened through a number of agreements that cover strategic sectors. During the visit of Indonesian President Prabowo Subianto to South Korea on April 1, 2026, the two countries secured more than 20 agreements worth US$102 billion or around Rp173 trillion.

Indonesian Ambassador to South Korea Cecep Herawan stated that the series of agreements not only focuses on the economy but also includes intergovernmental cooperation in politics, defense, education, culture, technology, and artificial intelligence (AI).

"More than 20 concrete agreements are included, with commitments in a government-to-government (G2G) nature in the fields of politics, defense, economy, education, culture, technology, and AI," Cecep said during a discussion event by the Korean Foundation (KF) and the Foreign Policy Community of Indonesia (FPCI) at the Indonesian Embassy in Seoul on Tuesday, June 9, 2026.

Cecep detailed that the various agreements demonstrate the increasingly close relationship between Indonesia and South Korea as fellow middle power countries. The two countries are now not only establishing trade relations but also expanding collaboration in sectors deemed important for long-term development.

Defense Collaboration

One of the sectors that continues to be the foundation of the relationship between the two countries is defense. Cecep mentioned that Indonesia holds a special position in South Korea's defense industry. Since 1979, Indonesia has been recorded as the first customer of several defense products developed by the country.

Some of the products used by Indonesia include the KAI KT-1 Woongbi trainer aircraft operated by the TNI Air Force's Jupiter Team and the KAI T-50 Golden Eagle fighter trainer aircraft.

Nevertheless, the defense cooperation between the two countries is not limited to the purchase of main weapon systems. Cecep stated that Indonesia is also involved in the development of South Korea's defense industry.

"We are not only buying for defense purposes. Indonesia also becomes a partner in the development of Korea's defense industry," Cecep said.

This involvement is evident in the project to develop the latest generation of fighter aircraft, KF-21 Boramae. Indonesia has sent a number of engineers and pilots to directly participate in the project.

Cecep believes that this participation provides benefits in the form of knowledge and experience transfer that can support the development of Indonesia's human resources in the defense industry sector.

"Korea learned defense industry from America. We learned the defense industry that Korea has learned from America to Korea," he added.

Electric Vehicles to Renewable Energy

In addition to defense, the cooperation agreed upon by Indonesia and South Korea also extends to the electric vehicle, semiconductor, renewable energy, and industrial investment sectors. These fields are part of the agenda to strengthen industries and develop technologies that both countries are currently driving.

Cecep hopes that Indonesia's political and economic climate remains stable so that various agreed investment commitments can be realized. According to him, stability is an important factor in maintaining the trust of foreign investors and encouraging new investments in Indonesia.

Meanwhile, Cecep also believes that the cooperation between Indonesia and South Korea remains relevant because both countries have complementary advantages. "Because Korea excels in technology and information, while we excel in natural resources and we also have an abundant human resource," he said.

Read: South Korea Invites Indonesia to Join KF-21 Fighter Jet Supply Chain

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