Free Trade Zones

S. Korea, Indonesia agree to cooperate in mineral, electric car supply chains

SEOUL, 22 Feb. (Yonhap) — South Korea and Indonesia on Tuesday agreed to boost bilateral cooperation in key mineral supply chains and the electric car sector, Seoul’s industry ministry said.

The two sides signed a total of five memorandums of understanding (MOUs) on the issues during an economic cooperation committee meeting held in Jakarta earlier today.

The meeting was co-chaired by South Korean Industry Minister Moon Sung-wook and Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto.

According to the ministry, the MOU on key minerals calls for information sharing between the two ministries and support for related joint projects to help ensure the countries’ stable supply of key industrial products.

The two parties have also committed to working closely on electric vehicles and their charging infrastructure in all three of the five agreements. Moon called for Indonesia’s continued support for better business environments in the electric vehicle sector for foreign investors, according to the ministry.

They also agreed to make joint efforts to boost bilateral trade and investment in their free economic zones, he added.

“Moon expressed appreciation for Indonesia’s cooperation on urea solution supply last year and offered to strengthen bilateral relations to help resolve global supply chain disruptions. Indonesia is committed to actively cooperating with South Korea,” the ministry said in a statement.

South Korea has experienced a supply shortage of urea solution, a critical fluid needed in diesel cars to reduce emissions, after China imposed urea export restrictions in October to mitigate the domestic supply bottlenecks.

During his three-day stay in Indonesia which started on Sunday, Moon also held talks with the Indonesian Minister of Energy and the Chief of Maritime Investments to explore avenues of cooperation in new areas of renewable energy for their zero emissions targets, according to the ministry.