President Lee Jae-myung told Indonesian President Prabowo Subianto during a summit on Thursday that "Indonesia's stable supply of key energy sources such as liquefied natural gas and coal is very reassuring." Referring to the ongoing war in the Middle East, Lee stressed that "there is a great need to expand stable energy supply and resource security cooperation between the two countries." The two leaders also confirmed that the KF-21 fighter jet joint development program will be completed by June.
The remarks came at a Korea-Indonesia summit held at Cheong Wa Dae on the occasion of Prabowo's state visit. Lee said the fallout from the Middle East war "raises serious concerns about the impact on both countries' energy supply chains and the broader regional economy."
Lee hailed the "historic achievement of elevating bilateral relations to a Special Comprehensive Strategic Partnership — the only such designation the Republic of Korea has granted." He added that "Indonesia was the first overseas investment destination for Korean companies and is a valued partner that made K-defense possible today." The remarks were widely interpreted as a reference to the imminent export of the KF-21, Korea's indigenous fighter jet whose first serial-production unit recently rolled off the assembly line.
The two countries issued a joint statement upgrading bilateral relations to a "Special Comprehensive Strategic Partnership" spanning politics, security, and trade. Cheong Wa Dae spokesperson Kang Yu-jeong said, "The two leaders congratulated the KF-21 and IF-X fighter jet joint development program — a collaboration spanning more than a decade — on its upcoming successful completion in June this year."
At a state luncheon that followed at the Cheong Wa Dae Guest House, Lee quoted an Indonesian saying meaning "like bamboo on a riverbank" and explained it signifies that "the two countries are inseparable, and closer and more special when they stand together." Prabowo responded by citing the Korean proverb "if you go together, you go far," then said the phrase in Korean himself — drawing applause from the audience.
Twenty-four top business leaders attended the luncheon, including SK Group Chairman Tae-won Choi, who also serves as chairman of the Korea Chamber of Commerce and Industry, Hyundai Motor Group Executive Chairman Euisun Chung, Lotte Group Chairman Dong-bin Shin, and POSCO Chairman Chang In-hwa. They pledged private-sector cooperation in investment, supply chains, and defense. Lee said, "Korean companies will enter strategic industries that underpin the 'Golden Indonesia Vision' and become key drivers of shared prosperity." He added, "We also look forward to active strategic investment cooperation through Danantara, which has grown into a world-class sovereign wealth fund." The Golden Indonesia Vision is a national plan aiming for developed-nation status by 2045, the centennial of Indonesia's independence.
Reflecting the leaders' commitment to cooperation, the two countries signed 16 memorandums of understanding. Ten MOUs were signed in the presence of both leaders, including an MOU on a Special Comprehensive Strategic Dialogue and an MOU on Economic Cooperation 2.0 aimed at reactivating the Korea-Indonesia Economic Cooperation Committee, which has been inactive since July 2023. An MOU on Critical Minerals Cooperation was also adopted, covering joint identification of promising projects, geological surveys and exploration, and policy research. A financial cooperation MOU was signed between the Export-Import Bank of Korea and Danantara, Indonesia's sovereign wealth fund.
Considering that this was Prabowo's first bilateral visit to Korea since taking office, Lee extended special courtesies at the official welcoming ceremony. He conferred the Grand Order of Mugunghwa, the nation's highest decoration, in recognition of Prabowo's contributions to bilateral friendship. The state luncheon was prepared with halal ingredients, excluding pork and alcohol, in deference to Prabowo's Muslim faith. For the cultural program, the Army Taekwondo demonstration team performed in a nod to Prabowo's military background and his role as head of Indonesia's traditional martial art Pencak Silat association. Lee also presented a traditional Korean bow set and a martial arts manuscript as gifts.
After the summit, Lee chaired the third Emergency Economic Review Meeting at Cheong Wa Dae, examining response measures related to the Middle East war. During the meeting, he called for measures to stabilize energy supply and demand and diversify supply chains, as well as additional support for vulnerable groups beyond what is already included in the supplementary budget bill.
