Home > National > Diplomacy

Korea and Indonesia upgrade ties to 'special comprehensive strategic partnership,' sign 16 MOUs during summit

Published: 01 Apr. 2026, 19:38 Updated: 01 Apr. 2026, 19:57

SARAH KIM
[email protected]

President Lee Jae Myung, right, and Indonesian President Prabowo Subianto chat as they exchange gifts following their bilateral summit as they stroll along Nokjiwon, a lush garden in the Blue House complex in central Seoul, on April 1. [BLUE HOUSE]

Korea and Indonesia elevated their bilateral relations to a "special comprehensive strategic partnership" as President Lee Jae Myung and Indonesian President Prabowo Subianto agreed to expand cooperation in trade, investment, energy and the defense industry during a bilateral summit on Wednesday.

During the summit, Lee called on the need to expand resource security cooperation to minimize the impact of the Middle East crisis during their talks at the Blue House in central Seoul amid concerns over gas supplies due to the U.S.-Israeli war on Iran.

"There is great concern about the impact that the aftermath of the Middle East war will have on the energy supply chains of both countries as well as the regional economy," Lee said during bilateral talks, adding he is "reassured by the stable role Indonesia plays in providing major energy sources" such as liquefied natural gas (LNG) and coal.

Korea and Indonesia signed 16 memorandums of understanding (MOUs) on the occasion of the summit to expand cooperation in sectors including the economy, critical minerals and clean energy.

President Lee Jae Myung, center, and Indonesian President Prabowo Subianto, right, inspect an honor guard during a welcoming ceremony at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

Prabowo arrived in Seoul for a three-day state visit Tuesday, and the two leaders on Wednesday took part in a welcoming ceremony, followed by summit talks, an MOU signing ceremony, a luncheon and an event to exchange gifts and expand friendly ties.

During their summit talks, Lee stressed that "amid global uncertainty and various challenges, the existence of our two countries is a blessing to one another."

Lee stressed that "Indonesia was the first overseas investment destination for Korean companies and a valuable partner that made today's K-defense industry possible."

He added that there is a "great need to expand bilateral cooperation regarding the stable supply of energy and resource security to minimize the impact of this crisis on the economies and lives of the people of both nations."

Indonesia is the leading global largest exporter of thermal coal.

Prabowo said that the two countries can play a "complementary role" to one another, noting that Korea possesses outstanding industrial capabilities and science and technology, while Indonesia has abundant resources and a large market.

President Lee Jae Myung, center left, and Indonesian President Prabowo Subianto, center right, poses for a photo after an MOU signing ceremony on cooperation regarding critical minerals at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

Lee and Prabowo on Wednesday adopted a joint statement upgrading bilateral relations from a "special strategic partnership," established in 2017, to a "special comprehensive strategic partnership" for inclusive growth and shared prosperity.

The statement covered political and security; trade, investment and industry; advanced technology, energy transition and green economy; sociocultural and people-to-people exchanges; and regional and global cooperation.

The leaders also underscored the "importance of maintaining stable, open, and reliable global energy supply chains" and "minimizing disruption to the flow of energy and essential goods."

The two sides announced the "Global AI Universal Basic Society Solidarity Initiative," a framework where the fundamental rights of every individual are actively realized.

In the statement, the two leaders "noted with satisfaction" that the joint development of the KF-21 fighter aircraft, which has been underway for over 10 years between the two countries, is scheduled for completion in June, "and expressed their commitment to cooperation on the IF-21 production project and their expectations for the continued progress of other defense industry cooperation projects," including collaboration on trainer aircraft, anti-tank guide missile (ATGM) systems and ammunition.

Korea launched its KF-21 Boramae program in 2015 to develop its first domestic supersonic fighter and Indonesia signed on as a partner.

Korean President Lee Jae Myung, right, and Indonesian President Prabowo Subianto shakes hands during their bilateral summit at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

During their closed-door talks, Lee explained the Korean government's policy of peaceful coexistence and joint growth on the Korean Peninsula, as well as its efforts to resume inter-Korean dialogue, and requested Indonesia play a constructive role. Prabowo in turn reaffirmed his support for the denuclearization and peace on the Korean Peninsula.

The MOUs signed included cooperation on the economy, a critical mineral partnership, digital development, AI, basic health and human development, clean energy, carbon capture and storage, the offshore plant service industry, environment and intellectual property protection.

The MOU on critical minerals and nuclear energy expands the scope of cooperation beyond policy exchanges to include exploration, development, processing, refining and workforce training. It also establishes an implementation framework, such as a director-general level working group. Indonesia serves as a strategic hub in the global core mineral supply chain through its leading nickel and tin reserves.

Hyundai Motor Group Executive Chair Euisun Chung, center left, and Lotte Chairman Shin Dong-bin speak with attendees at a state luncheon hosted for Indonesian President Prabowo Subianto by President Lee Jae Myung at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

SK Group Chairman Chey Tae-won, left, chair of the Korea Chamber of Commerce and Industry, speaks with attendees at a state luncheon hosted for Indonesian President Prabowo Subianto by President Lee Jae Myung at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

At the state luncheon, Lee and Prabowo exchanged greetings in each other's languages.The event was attended by leaders of Korea's top conglomerates including SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Euisun Chung and Lotte Chairman Shin Dong-bin.

The Korean menu featured halal ingredients, and the two leaders later watched a performance by the Korean Army's taekwondo demonstration team at the Blue House Nokjiwon garden.

Lee recognized Prabowo's contributions to strengthening friendly relations between the two countries and awarded him the Grand Order of Mugunghwa, Korea's highest medal of honor, in recognition of his efforts supporting Korean companies and improving bilateral ties, presidential spokesperson Kang Yu-jung said.

Lee also gave Prabowo a specially-crafted traditional Korean archery bow set and an English translation of a martial arts book from the Joseon Dynasty (1392-1910), in a nod to Prabowo's interest in martial arts, reflective of his time as a former Army general and defense minister.

Korean President Lee Jae Myung, right, and Indonesian President Prabowo Subianto toast at the state luncheon at the Blue House in central Seoul on April 1. [JOINT PRESS CORPS]

Prabowo presented Lee with a Balinese carved nameplate inscribed with "Lee Jae Myung, President of the Republic of Korea," in hangul, referring to the country by its official name, as well as a dagger crafted by Balinese artisans, a ceramic jar featuring traditional patterns from the northern Java region of Indonesia and clothing and a leash for Lee's pet dog.

Korea also presented a welcome kit at Prabowo's accommodations that included a figure-eight shaped cake featuring the flags of both countries to commemorate his tenure as the eighth president of Indonesia, as well as a set of eight types of traditional Korean sweets and rice cakes.

The Grand Order of Mugunghwa is presented by President Lee Jae Myung to Indonesian President Prabowo Subianto during his state visit on April 1. [BLUE HOUSE]

Separately, the Bank of Korea (BOK) and Bank Indonesia established a local currency transaction framework, following up on an MOU signed in July 2024.

Travelers between Korea and Indonesia can now make payments without exchanging currencies using a cross-border QR code-based payment system, the BOK announced Wednesday. The service aims to extend the QR-based payment system to other members of the Association of Southeast Asian Nations, or Asean in the future.

BY SARAH KIM [[email protected]]