Top government officials and entrepreneurs from South Korea and Indonesia on Tuesday renewed their commitment to bolstering economic and business ties between the two countries, commemorating the 50th anniversary of bilateral relations this year.

“As of 2022, South Korea became the seventh largest investor in Indonesia, reaching $2.29 billion, a 40.06 percent jump from a year earlier. Indonesia is ready to cooperate with Korea in the field of technology exchange, investment, education, R&D, and the creation of a strong value chain,” said Gandi Sulistiyanto, Indonesia's ambassador to Korea, in his welcoming remarks during the Business Forum on 50 years of Indonesia-Korea Relations held at a Seoul hotel.

The event was co-hosted by The Korea Herald, the Embassy of the Republic of Indonesia in Seoul and the Indonesia Investment Promotion Center Seoul.

Emphasizing partnerships in the automotive industry, Sulistiyanto added that the special edition of Hyundai Motor Group’s flagship electric vehicle Ioniq 5, which embodies Indonesian heritage and batik design, will be unveiled next month at a trade show in Jakarta.

Korea Herald CEO Choi Jin-young highlighted Indonesia’s potential as a key player in shaping the global EV ecosystem and said, “With fast-growing foreign direct investment, the country is expected to become the world’s fourth largest economy by 2050.”

Under the tagline “Empowering Innovation,” a group of panels discussed ways to enhance bilateral cooperation on EVs.

Sulistiyanto touted that the Indonesian government is committed to boost the EV industry, providing incentives for those who purchase electric cars -- cutting value added tax from 11 percent to 1 percent and providing exemption on the 15 percent luxury tax.

“We are making efforts to play a part in creating an EV ecosystem in line with the Indonesian government’s eco-friendly energy policy,” said Lee Young-tack, president of ASEAN Headquarters at Hyundai Motor Group. “Our battery cell and pack manufacturing plants in Indonesia are scheduled to start operation in 2024.”

Lee added that the carmaker is seeking to expand cooperation with the government in the industry’s downstream charging infrastructure and the recycling of used batteries, as well as in the upstream sector of mining and the processing of raw materials.

During a separate discussion session, other officials and business insiders explored possible measures to promote Indonesia's agricultural sector by increasing Korean investment in the agricultural food value chain and the agricultural machinery industry.

The forum also explored the strengthening of Korea and Indonesia’s economic ties through investments in Indonesia’s industrial parks and special economic zones.

“We hope to see more investments from South Korea this year and hope that South Korea can jump up the ladder (to become one of the) top 5 largest investors,” said Riyatno, deputy minister for investment cooperation, adding that industrial parks development projects, including the Smart Eco Industrial Park, which applies the Internet of Things and smart infrastructures, are open for foreign investors.

Bambang Wijanarko, head of the Development and Management Controlling Division of Indonesia's Special Economic Zones, underscored that Indonesia has a wide range of special economic zones granting fiscal and non-fiscal incentives for investors, including Korea, ranging from investors in the automotive industry and energy to digital technology.

Enhancing trade cooperation is another key agenda in strengthening economic ties between the two nations.

“Indonesia-Korea Comprehensive Partnership Agreement offers wider opportunities than ASEAN-Korea Free Trade Agreement in terms of trade in goods, services, investment and economic cooperation,” said Edi Prio Pambudi, Deputy Coordinating Minister for International Economic Cooperation, Coordinating Ministry for Economic Affairs of the Republic of Indonesia.