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| President Yoon Suk Yeol, right, and Indonesia's President Joko Widodo make a toast at the presidential office in Yongsan, Seoul, July 28, 2022. Korea Times file |
By Lee Kyung-min
The possibilities of growth are endless from strengthened ties between Korea and Indonesia with a future-oriented vision underpinned in large part by greater partnerships in the areas of trade, investment and labor force utilization, the Southeast Asian country's ambassador said Thursday.
"Korea's business opportunities in Indonesia are simply endless," said Gandi Sulistiyanto, ambassador of Indonesia to Korea. He was the key speaker of The Korea Times Global Business Club held at the Korea Press Center, Thursday. Dignitaries and business executives were also in attendance. The Indonesian incorporated team at the embassy of Indonesia in Seoul prepared the ambassador's speech presentation.
Thursday's event was the first in a series of business forums organized by The Korea Times. Four upcoming throughout the year will share insight into key issues in Japan, China and Saudi Arabia.
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Building green, low-carbon economy
Anchoring the rosy prospect is Indonesia's Vision 2045 whereby six game-changing strategies will be mapped out to help the country achieve a green and low-carbon economy, capital relocation and digital transformation.
The overarching objective will be bolstered further by six investment priorities that place greater weight on the enhanced management of labor-intensive industries, export-oriented industry, renewables, infrastructure building, digital economy and natural resource value-adding industries.
Effective investment will be reinforced in large part by Government Regulation in Lieu of Law No. 2 Year 2022, which stipulates incentives for industrialization, the creation of robust investment climates through comprehensive regulation, and increased easing of business practice through licensing simplification.
Greater cooperation in the business and labor sectors will create synergy to the advantage of both, as outlined by Indonesia-Korea Comprehensive Economic Partnership Agreement (IK- CEPA), officially implemented in Jan. 1.
The two will identify growth opportunities, mostly through enhanced market access, trade and investment facilitation and strategic development partnership.
Bilateral trade restrictions or barriers are reduced or removed on more than 90 percent of goods traded between the two countries, including tariffs, and non-tariff barriers.
Investments will be promoted through the opening of 100 services and sub-sectors with a total foreign equity participation of 100 percent, according to the ambassador, who added that Indonesia will give tariff preferences to facilitate Korean investment.
Business-to-business (B2B) investment and Public-Private Partnership (PPP) schemes will support Indonesia's National Strategic Projects.
Korean firms investing will be exempted from two years of import duty. The period will be increased to four years for firms that use a minimum of 30 percent of locally produced machines.
This applies to industries that produce goods and services, including tourism and culture, public transportation, public health services, mining, construction, telecommunications and ports.
This year's event carries all the more significance, since 2023 is the 50th year anniversary of the establishment of diplomatic ties between the two countries.
Indonesia is the only Southeast Asian country with a Special Strategic Partnership with Korea. Indonesia's total trade volume with Korea amounted to $24.5 billion (31.4 trillion won) in 2022, up 33.2 percent from 2021.
Korea's investment realization in Indonesia is the 7th largest in 2022, the ambassador said, reaching $2.29 billion, up over 40 percent from 2021.
The two countries maintain strong relationships, as evidenced by regular summits and meetings at all levels between officials and businessmen.
In 2022, the leaders of the two countries ― President Yoon Suk Yeol and President Joko Widodo ― met on two occasions. One during President Jokowi's visit to Seoul in July 2022 and the other during President Yoon's visit to the G20 Bali summit in November 2022.
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