Indonesia Hopeful to Boost Infrastructure, Maritime Cooperation With South Korea

December 21, 2018, Jakarta Globe

Coordinating Maritime Affairs Minister Luhut Binsar Pandjaitan saw opportunities to increase cooperation with South Korea in various industries, including transportation sector, during his two-day visit to the country on Dec. 19-20.

The minister visited South Korean this week and held a series of meetings with various parties, including with Prime Minister Lee Nak-Yeon.

Luhut mentioned the possibility of working with South Korean Hyundai to produce train wagons for Greater Jakarta’s upcoming Light Rail Transit (LRT) project.

Luhut visited Hyunda’s train maker unit Hyundai Railroading Technology System (Hyunday Rotem)’s factory in Busan on Wednesday. The factory produces items related to trains and railways.

“They said that they are ready to transfer technology during the development process of the project,” Luhut said in a statement, adding that the transfer of technology and the use of local products are main concerns of the Indonesian government.

Luhut on Tuesday met South Korean Land, Infrastructure and Transportation Minister Kim Hyunmee, in which Kim said that her country is actively investing in infrastructure projects overseas.

Kim said this year South Korean secured $100 million to invest in Association of Southeast Asian Nations (Asean) countries, including Indonesia, in the infrastructure sector.

For Indonesia, the country wants to fund phase two and three of construction on the LRT project. Indonesia has been developing the Greater Jakarta LRT project, which is expected to cost Rp 27 trillion ($1.9 billion) and to begin operations in 2019.

She said that South Korea is also ready to work on the city’s Mass Rapid Transit system (MRT).

Luhut was accompanied on his visit by Indonesian locomotive maker INKA’s vice president for overseas marketing Bambang Kushendarto, who said that Hyundai’s products are compatible for Indonesia’s demands.

Chief executive of Hyundai Rotem, Kim Seung-tack, explained that the company has been working in 36 countries, including in Canada, the United States and Turkey.

Indonesia expects 70 percent of total project to use local content, while 30 percent of the project could be completed in South Korea, Luhut said.

Maritime Cooperation

South Korea’s Daweoo Shipbuilding and Marine Engineering (DSME) has been working together with Indonesian ship builder PAL to build 12 submarines for Indonesia, nine of which will be built in Indonesia as part of a transfer of technology.

Luhut on Tuesday also met South Korean Maritime and Fisheries Minister Kim Young-Choon to discuss cooperation in the future on handling marine and plastic waste.

“We hope for the presence of technology from South Korea in this [marine and plastic waste] project, including our current activity of cleaning Citarum River [in West Java], which is well-known as the dirtiest river in the world,” Luhut said.

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