"IK-CEPA, which was signed on December 18, 2020, in Seoul, has come into effect since January 1, 2023; thus, it can strengthen economic, trade, and investment cooperation between the two countries," Soesatyo said in a statement issued on Thursday.
The implementation of IK-CEPA also marks the 50th anniversary of diplomatic relations between Indonesia and South Korea.
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"Apart from the IK-CEPA, Indonesia and South Korea have various other important collaborations, which need to be followed up," Soesatyo added.
The collaborations include the implementation of memoranda of understanding (MoUs) on the development of a clean water supply infrastructure and smart city system in Indonesia’s future capital (IKN), Nusantara, as well as the cost-sharing of the KF-X/IF-X fighter jet development project, he noted.
Furthermore, South Korea has made an investment commitment to Indonesia of US$6.75 billion for the development of the steel industry, petrochemicals, electric vehicle batteries and electric cables, telecommunications, garments, as well as renewable energy resources.
In addition, the two countries still have to follow up on several agreements signed on the sidelines of the 2022 G20 Summit.
"Such as (the agreements on) digital economy cooperation, MSMEs (micro, small, and medium enterprises), and start-up cooperation, as well as the establishment of a high-level dialogue on investment," the MPR Speaker informed.
The government of Indonesia always pays great attention to the investments made by South Korean stakeholders, he added.
For instance, President Joko Widodo (Jokowi) attended the groundbreaking ceremony for the construction of an electric vehicle battery factory of PT HKML Battery Indonesia, an Indonesian-South Korean consortium’s subsidiary, in Karawang district, West Java province, on September 15, 2021.
He also inaugurated PT Hyundai Motor Manufacturing Indonesia in Cikarang Industrial Area, West Java province, and witnessed the launch of IONIQ 5, the first electric car made in Indonesia, on March 16, 2022.
Furthermore, on June 8, 2022, he inaugurated the construction of Phase 2 of South Korean company LG Energy Solution consortium's electric vehicle battery factory worth US$9.8 billion in the Batang Integrated Industrial Area, Central Java province.
Soesatyo noted that the collaborations were the result of the Indonesia-Korea Roundtable Investment Dialogue held on April 8, 2021.
He said he expected the electric vehicle battery industry to absorb thousands of Indonesian workers.
He expressed the hope that if Indonesia’s nickel reserve potential of 21 million metric tons can be managed optimally, the country and its investment partners would become major global producers of electric vehicle batteries.