South Korea and Indonesia Strengthen Ties on Defence, Energy and Supply Chains

South Korea and Indonesia agreed on Wednesday to expand cooperation across defence industries, technology and supply chains, as both nations seek to strengthen their strategic partnership amid global uncertainty linked to the war in the Middle East.

The agreement followed a summit in Seoul between South Korean President Lee Jae Myung and Indonesian President Prabowo Subianto. After the meeting, the two governments issued a joint statement outlining plans to deepen economic ties and continue collaboration on key defence projects.

The leaders reaffirmed their commitment to joint military development programmes, including work on fighter jets, trainer aircraft and anti-tank missile systems. A central focus remains the KF-21 supersonic fighter jet project, which South Korea launched in 2015 with Indonesia as a key partner. The first batch of these aircraft was rolled out recently, and Seoul is expected to export 16 units to Indonesia as part of the cooperation.

Both countries also agreed to strengthen supply chain partnerships, particularly in energy and critical minerals. The move comes as global supply disruptions linked to the Middle East conflict continue to affect markets and trade flows.

President Lee described Indonesia as an important partner in ensuring energy security, highlighting its role as a major supplier of natural gas and coal. According to the South Korean government, domestic companies are set to receive around 820,000 tons of liquefied natural gas from Indonesia this year. The volume is sufficient to power the country’s gas-fired plants for approximately 12 days.

The agreement reflects growing efforts by both nations to secure stable access to essential resources while reducing exposure to geopolitical risks. Supply chains for critical minerals, which are vital for manufacturing and technology industries, were also identified as a priority area for closer cooperation.

Officials said the expanded partnership would support long-term industrial growth and improve resilience against external shocks. By strengthening defence ties and resource cooperation, both countries aim to build a more integrated economic and security framework.

The meeting also underscored the broader strategic alignment between Seoul and Jakarta as they navigate a shifting global landscape. With energy markets under pressure and defence collaboration becoming increasingly important, both governments signalled their intention to deepen engagement across multiple sectors.

The strengthened partnership is expected to pave the way for further agreements in trade, technology and security, reinforcing ties between two of Asia’s key economies at a time of heightened global uncertainty.