Indonesia, South Korea Reinforce Defense Ties, Aerospace Cooperation

Indonesia and South Korea are deepening their longstanding partnership, focusing on both defense and economic cooperation. In defense, recent high-level meetings reaffirmed their commitment to joint projects like the KF-21/IFX fighter jet, with Indonesia benefiting from technology transfers and reduced financial contributions, enhancing its aerospace capabilities. Economically, President Prabowo Subianto and top Indonesian officials welcomed substantial additional investments from South Korean companies, particularly in sectors such as petrochemicals and automotive, with commitments totaling over $1.7 billion in new investments. Major Korean firms, including Lotte Group and Hyundai, are expanding their presence, with collaborative projects like the Lotte Chemicals plant slated for inauguration later in 2025. These efforts are part of a broader strategy to strengthen bilateral business ties, foster industrial expansion, and bolster Indonesia’s role in the global supply chain. The partnership is seen as mutually beneficial, advancing Indonesia’s strategic industries while offering growth opportunities for South Korean enterprises.