Yoon from South Korea holds meeting with Indonesian leader to strengthen economic and defense connections.

JAKARTA, Indonesia (AP) — South Korean President Yoon Suk Yeol met with his Indonesian counterpart, Joko Widodo, on Friday seeking to deepen economic ties and defense cooperation at a time of heightened global geopolitical tensions.

Since Tuesday, Yoon has been present in Jakarta, the capital of Indonesia, participating in a three-day summit organized by the leaders of the Association of Southeast Asian Nations. This summit brought together leaders from both Asian and Western countries and focused on addressing significant conflicts in Asia. The participants emphasized the importance of peaceful resolutions and exercising restraint.

Widodo and his wife, Iriana, hosted Yoon and South Korean first lady Kim Keon Hee at a ceremony in the colonial-style Merdeka palace in Jakarta.

At their meeting, the two leaders reached a consensus to strengthen their strategic alliance in the fields of security and defense, as well as to enhance collaboration in emerging sectors like electric vehicles, batteries, and smart cities.

After the meeting, Retno Marsudi, the foreign affairs minister of Indonesia, informed the press that Widodo expressed his approval of the pledges made by LG, a South Korean company, and its Indonesian partners. These commitments aim to expedite the implementation of a significant investment plan valued at $9.8 billion. The investment will be utilized for the establishment of a cathode factory on Batam island in Indonesia, which is located adjacent to Singapore.

The commencement of factory construction, which will involve Indonesia’s state-owned companies and regional businesses, is anticipated to take place this year. Cathodes play a vital role in the production of batteries for electric vehicles worldwide.

According to government data, Indonesia, the biggest economy in Southeast Asia, has purchased South Korean arms worth a total of $4.3 billion. This makes Indonesia the primary export market for South Korea among ASEAN countries.

Indonesia is the only country to have imported a Korean submarine and also the first country to import Korea’s KT-1 and T-50 training aircraft. Indonesia is participating as a partner to shoulder 20% of a $6 billion deal to build Korea’s first domestically developed advanced fighter jet by 2026. The project began in 2015.

On Friday, the two leaders participated in the signing of agreements related to agriculture, infrastructure, electrical vehicle ecosystems, and food exports. They also discussed the potential investment from Korea in Indonesia’s upcoming new capital city. Indonesia intends to relocate its capital from Jakarta, a crowded and polluted city on Java island, to Nusantara on Borneo island in the coming year.

They also talked about matters concerning specific regions, such as Southeast Asia’s plan to protect an Indo-Pacific region that is both free and open.

During discussions with leaders from Southeast Asia, China and Japan in Jakarta on Wednesday, Yoon expressed worries regarding North Korea’s nuclear and missile actions. Yoon emphasized the importance of a strong and unified reaction from the global community.

During the Jakarta meetings, Widodo handed over the leadership of the regional group to Laos. He described ASEAN as a much-needed peacemaker in the world.

Indonesia and South Korea are members of the Group of 20 major developed and emerging economies. The two leaders were scheduled to leave Jakarta on Friday afternoon for New Delhi to attend the G20 Summit.