Korea and Indonesia have deepened their partnership by further developing the latter’s EV and battery supply chains.
More than just nickel and batteries
Like its Southeast Asian neighbours, Indonesia aims to become a major player in the global EV and battery supply chains. While Chinese-based EV makers maintained close ties with the nickel-rich country, US President Donald Trump threatened to increase tariffs on China-made products. Indonesia has since sought other countries to make deals such as South Korea.
Earlier this month, Indonesian President Prabowo Subianto paid a state visit to South Korea. During this visit, Korea’s Ministry of Trade, Industry, and Resources (MOTIR) and the Indonesia Embassy held the Korea-Indonesia Business Forum. At the event, several organisations from both countries discussed how to deepen their economic relationship. One item discussed was Korea’s role in developing Indonesia’s local EV supply chain and network.
“Korea will be one of Indonesia’s most important partners in this strategy,” said chair of the Indonesian Chamber of Commerce and Industry (KADIN) and Bakrie Brothers CEO Anindya Novyan Bakrie in an interview with The Korean Herald. “For Indonesia, Korea’s role is highly strategic over the next decade because Indonesia is not just trying to sell nickel, we are trying to build a complete domestic EV and battery industry.”
Bakrie noted that the Indonesia’s EV market is still in its “early stages,” but is optimistic about its potential. With Korea’s participation guaranteed, he also predicts improvement across several of Indonesia’s sectors such as biotechnology, advanced manufacturing supply chains, and consumer industries.
Mutually beneficial
Indonesia’s Ministry of Energy and Mineral Resources (EDSM) and South Korea’s Ministry of Climate, Energy, and Environment signed a memorandum of understanding (MoU) on a clean energy cooperation initiative.
Under the MoU, one of Korea and Indonesia’s collaborations include the expansion of the latter’s existing energy infrastructure. Antara reported that the partnership’s plans include EV charging stations, smart electricity grids, and battery recycling facilities.
“South Korea has extraordinary industrial and technological capabilities, while Indonesia has abundant resources and a large market,” said Indonesian President Prabowo. According to Bakrie, the partnership is essential to President Prabowo’s goal to grow Indonesia’s economy from 5 per cent to 8 per cent in 3 years.
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