On 28 April 2025, the Indonesian Employers Association (APINDO) and the Federation of Korean Industries (FKI) signed a memorandum of understanding on building bilateral investment and cooperation during a Business Roundtable event in Jakarta. The objective of the agreement is to enhance investment in a variety of sectors, including manufacturing, electric vehicles, retail, petrochemicals, green technology, and fintech. The Korean business delegation, representing the best of Korea, has brought a total investment of USD 15.4 billion to Indonesia. Significantly, the APINDO-FKI relationship represents a landmark in strategic economic collaboration. Alongside the signing of the Mou, the Korea-Indonesia Business Council was also established.
APINDO and FKI also held a discussion on five priority issues related to South Korean investment in Indonesia. Firstly, Indonesia will commit to strengthening the investment climate, including with South Korean companies. Secondly, APINDO promotes collaboration through the Danantara. Thirdly, Indonesia adheres to a policy of simplifying regulations, increasing transparency, and ensuring fair competition for all investors. Fourthly, Indonesia reaffirmed its commitment to the development of South Korea's electric vehicle ecosystem. Fifthly, collaboration between Indonesia and South Korea is set to strengthen supply chains and bilateral trade in the face of the threat posed by US import tariffs. As a strategic partner, South Korea has played a significant role in supporting Indonesia's economic growth and development. This cooperation will see FKI strengthen its collaboration with Indonesian resources and South Korea's advanced manufacturing technology. The aim is to encourage the growth of downstream industries in Indonesia, which are oriented towards increasing the added value of national industries. For instance, the companies Hyundai Motor and LG Energy Solution, KB Financial Group and Hanwha Life Insurance.
