South Korea, Indonesia Reset Ties after Election?
New leadership in Seoul offers Jakarta chance to mend strained relations.
With Lee Jae-myung‘s victory in South Korea’s presidential election, a fresh opportunity arises for President Prabowo Subianto to revitalize Indonesia-South Korea relations, wich have been tested by disputes over a joint jet fighter project.
Opportunity for Rapprochement
Given the economic importance of ties between Asia’s fourth- and fifth-largest economies, both leaders should prioritize a meeting to resolve the ongoing contract dispute. A new chapter could begin, setting aside previous disagreements.
snub Sparks Speculation
Traditionally, Indonesian presidents begin with visits to China, Japan, and South Korea. However, prabowo has notably omitted Seoul from his initial itinerary, fueling speculation, especially given the lack of official explanation.
KF-21 Boramae Jet Fighter Program
Indonesia initially committed to covering approximately 20% of the KF-21 Boramae jet fighter program’s 8.1 trillion won (US$5.95 billion) progress cost, according to Yonhap News Agency. Payment delays led Seoul to reduce Indonesia’s contribution from 1.6 trillion won to 600 billion won last year. Despite this, Indonesia has yet to fulfill its obligations, without providing a formal justification.
Arrests Addressed
The arrest of five Indonesian engineers at Korea Aerospace Industries (KAI) in Febuary 2023, accused of stealing project data, further strained relations. Although they were later cleared, the incident contributed to Indonesia’s reluctance to meet its financial commitments. South Korean officials recognized the damage these cases inflicted on bilateral ties.
Economic Ties at Stake
South Korea remains a significant investor in indonesia, particularly in SMEs, and a major trading partner. To prevent further deterioration, President Prabowo should promptly meet with President Lee to address these issues directly.
Choosing the Right Venue
President Prabowo should consider a dedicated visit to South Korea, rather than combining it with other engagements. While meetings during multilateral events are possible, a bilateral visit would underscore the importance Indonesia places on its relationship with South Korea.
Investment Boost
In April, South Korean companies pledged to increase their investments in Indonesia by approximately $1.7 billion, a more than 10% increase from the existing $15.4 billion. This commitment highlights the continued importance of the Indonesian market to South Korean businesses.
Reciprocal Respect
Seoul views Jakarta as a key ASEAN member, expecting commensurate treatment. Prime Minister Han Duck-soo attended President Prabowo‘s inauguration in October. The appointment of Bang Moon-kyu as ambassador demonstrates south Korea’s commitment, though Yoon Suk-yeol‘s impeachment has complicated matters.
Goodwill Gestures
The release of the Indonesian engineers signals South Korea’s desire to restore positive relations. indonesia should reciprocate this goodwill, recognizing South Korea’s importance as a trading and economic partner. In 2023, trade between Indonesia and South Korea reached $22.5 billion, highlighting the strong economic ties (Ministry of Foreign Affairs of Indonesia).
