despite an apparent decline in both trade in Indonesia and South Korea this year, the two countries agreed to collaborate in the promotion of industrialization.
During his visit to Seoul on Monday, President Joko Widodo met with South Korean President Park Geun-hye to discuss plans to work together to accelerate industrialization in the largest economy of Southeast Asia.
"Bank of the South Korean investment prospects welcoming to the industrial sector, Indonesia intends to make South Korea a partner to accelerate industrialization in Indonesia," President Widodo said as reported by The Jakarta Post.
In order to reduce steel imports from Indonesia, President Widodo allows the POSCO steel company to expand its plant in the country to produce 10 million tonnes steel with Krakatau steel. Accordingly, the President hoped that the expansion plans of POSCO will help Indonesia develop its own domestic steel industry.
Last year, Indonesia and Korea experienced a decrease in market value from US $ 22.47 billion in 2014 to $ 16.7 the following year. To recover from the fall, President Widodo encouraged both countries to work on improving trade by reducing tariff and non tariff barriers.
To achieve its vision of making Indonesia the largest digital economy in South Asia in 2020, President Widodo also called on South Korea to cooperate in capacity building, technical and technological assistance , co-branding programs and co-production.
The two countries also signed up to improve the maritime sector, in particular the treatment of fishing and illegal fishing. In addition, President Park has expressed interest in increasing investment in infrastructure in the maritime sector.