S. Korea, Indonesia sign MOUs worth $1.9 billion

2017.11.10 09:53:35 | 2017.11.10 11:17:15

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South Korea and Indonesia agreed to cooperate on various infrastructure projects in the Southeast Asian country, which would cost up to $1.9 billion, during Korean President Moon Jae-in’s state visit to Indonesia.

According to the Korean government, the two countries signed on a series of memorandum of understanding (MOU) that will allow Korean companies to participate in various infrastructure projects planned by the Indonesian government in the presence of Korean Transport Minister Kim Hyun-mi and her Indonesian counterpart Minister Budi Karya Sumadi at Ritz Carlton hotel in Jakarta, Indonesia on Thursday.

The agreements - in five areas including cooperation on Indonesia’s light rail transit system, low-cost housing project, and water resources project that would cost about $1.9 billion - were signed a day after Korean President Moon arrived in Indonesia on Wednesday for a three-day state visit.

Under the latest deals, Korea Rail Network Authority is expected to take part in the second phase of Jakarta’s Light Rail Transit development project aimed at resolving the country’s overall traffic congestion and air pollution. The two countries also agreed to cooperate in the water infrastructure sector such as the Karian water supply project and water power generation project in Bongka, Indonesia.

Another MOU would also allow Hanwha Engineering & Construction Corp. to join a $230 million project to build 1.87 million public housing units in Indonesia. Indonesia’s MNC Group has also signed on a MOU to partner with Korea’s Posco Engineering & Construction Co. to promote the first phase of a development project to build Lido new city in Indonesia.

Meanwhile, President Moon, who embarked on his first eight-day tour to Southeast Asian countries on Wednesday, met with his Indonesian counterpart Joko Widodo at Bogor Palace on Thursday and exchanged a wide range of views on bilateral partnership, defense infrastructure, economy and trade, and peaceful solution to North Korea’s nuclear weapons program, according to Korea’s residential office.

By Kang Gye-man

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