South Korean business leaders and executives met with Indonesian President Prabowo Subianto at the Merdeka Palace in Jakarta on April 28. The Federation of Korean Industries (FKI) dispatched a high-level economic delegation, led by Lotte Group Chairman Shin Dong-bin, for a two-day visit from April 28 to 29. The unusually large group included 24 CEOs and senior executives from major Korean companies, such as Samsung, SK, Hyundai Motor, POSCO, and Hanwha. It marked the first official exchange between the Prabowo administration and South Korea’s business community since Prabowo took office last October.
South Korean companies are accelerating efforts to tap into emerging markets amid escalating tariffs triggered by U.S. President Donald Trump’s trade wars. Expanding into overseas markets has become a key strategy to offset rising costs. Indonesia, the world’s fourth-most populous country, has maintained annual GDP growth above 5% over the past three years and is rich in mineral resources like nickel, making it an increasingly important market for both global and Korean companies.
Bilateral trade between South Korea and Indonesia reached $20.5 billion (around 30 trillion won) last year, making Indonesia Korea’s 13th-largest trading partner. The Korean business community believed that economic exchanges with Indonesia had yet to fully ramp up under the new Prabowo administration, prompting the dispatch of a large delegation. “Economic organizations and companies united to take the initiative in expanding private-sector cooperation,” said Kim Bong-man, head of FKI’s International Network Department.
FKI specifically requested Lotte Group Chairman Shin to lead the delegation, given Lotte’s significant business presence in Indonesia. Lotte Mart entered the Indonesian retail market in 2008 and currently operates 48 stores. Lotte Shopping posted over 1 trillion won in revenue there last year, while Lotte Chemical is investing $3.9 billion (about 5.6 trillion won) in a major petrochemical complex in Cilegon. “Considering that Indonesia is the largest recipient of Lotte Group’s overseas investment, we accepted FKI’s request,” a Lotte official said.
Originally, the delegation had planned a two-day visit to hold a South Korea-Indonesia Business Roundtable with the Indonesian Employers’ Association (Apindo) and meet with the Coordinating Ministry for Economic Affairs, Ministry of Investment, and Ministry of Industry. However, at 5 a.m. on April 28, Prabowo’s office confirmed a luncheon meeting with the Korean delegation, providing an official response to the large-scale visit.
The luncheon began at 11 a.m. local time and lasted for more than three hours. Korean representatives highlighted that Korean companies have already invested about 270 trillion rupiah (23 trillion won) in Indonesia, with further investments planned in advanced manufacturing and mineral resources. Chairman Shin emphasized, “As ASEAN’s largest economy, Indonesia is a key partner for Korean businesses,” adding, “Korean companies aim to be strategic partners as Indonesia shifts from a resource-driven economy to one focused on value creation.”
Indonesia, with its large population and abundant natural resources, continues to attract global corporations as a future growth market. The ASEAN+3 Macroeconomic Research Office (AMRO) forecasts GDP growth of 5% this year and 5.1% next year, both outpacing the ASEAN average of 4.7%.
