SEOUL: In light of the realignment of the global supply chain, South Korea and Indonesia decided on Wednesday to deepen their economic connections and pursue green technology-based growth, said the finance ministry.
According to the Ministry of Economy and Finance, the agreement was reached when Finance Minister Choo Kyung-ho visited his Indonesian counterpart, Sri Mulyani Indrawati, outside of the 56th Annual Meeting of the Board of Governors of the Asian Development Bank, which was held in Incheon, 27 kilometres west of Seoul.
During the meeting, Choo mentioned that South Korean businesses had made investments in a variety of industries in Indonesia, including the petrochemical, battery, and automotive sectors, reports read.
He asked Jakarta to keep working to overcome any potential economic obstacles facing Korean businesses, like cutting raw material tariffs.
By using South Korea's commitment to Indonesia through its Economic Development collaboration Fund, the two nations also decided to increase their collaboration in the green sector.
South Korea opted to more than double the cap on low-interest loans to Indonesia last year, increasing it from the previous $600 million set aside for 2016–21 to US$1.5 billion for the period of 2022–26.
First Vice Finance Minister Bang Ki-sun, meanwhile, met separately with Indonesian Minister Bambang Susantono to discuss the Southeast Asian country's proposed move of its capital from Jakarta to Nusantara.
Bang asked Indonesia to pay attention to and support South Korean businesses that wanted to take part in the infrastructure projects required for the relocation during the meeting.
The transfer, which would cost Indonesia approximately 40 trillion won ($29.9 billion), is anticipated to be finished in 2045.
This year marks the 50th anniversary of the two countries' establishment of diplomatic relations.
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