Seoul, February 22 (AseanAll) — On February 20, 2023, the Indonesian Embassy in Seoul and the South Korean Financial Supervisory Services (FSS), with the support of the Indonesian Financial Services Authority (OJK) and Indonesian State-Owned Bank Negara Indonesia (BNI) Seoul, co-organized a business forum to commemorate the 50th anniversary of Indonesia and Korea diplomatic relations with the title "Developing Closer Friendship and Stronger Partnership through Enhanced Financial Cooperation."
Photo Source: Indonesian Embassy in Seoul
Mahendra Siregar, Chairman of the Indonesian Financial Authority (OJK) was present at the event as the Guest of Honor and Keynote Speaker. The forum was held at the Seoul Dragon City Convention and was attended by around 100 guests consisting of leaders and representatives from Korean financial institutions, including banks, asset management companies, insurance companies, and securities companies, many of which are already operating in Indonesia.
Photo Source: Indonesian Embassy in Seoul
In his welcoming remarks, the Ambassador of the Republic of Indonesia to South Korea, Gandi Sulistiyanto stated that besides its strong economic growth and political stability, the Indonesian government is committed to improving the financial services sector's inclusion and firmness.
Ambassador Sulis further highlighted the promising economic growth in Indonesia, which recorded a 5.31% growth last year and a significant rise in FDI realization and total trade with the world, which reached 34% and 23.7%, respectively. He continued that Indonesia's current growth trajectory is the main reason Korean financial companies are confident in Indonesia as their primary business expansion destination. "The business forum marked the increased closeness and collaboration between Indonesia and Korea's financial sector, which will further catalyze our bilateral cooperation," the Ambassador concluded.
Representing the ROK Government, Lee Joon Soo, Senior Deputy Governor of the Financial Supervisory Services (FSS) of Korea, emphasized that Indonesia is currently the fourth largest market for Korean financial companies. "The business forum can help Korean companies have a better understanding of the OJK's regulatory and supervisory directions so that they are well-positioned to contribute to the development of the financial industry and consumer protection," he said, adding that the partnership between Indonesia and Korea has developed to the next level. Deputy Governor Lee also invites more Indonesian financial companies to establish businesses in Korea, where the FSS will proactively support them.
Photo Source: Indonesian Embassy in Seoul
Addressing the forum, Mahendra Siregar delivered a keynote speech outlining several policy priorities for OJK in 2023. The policy priorities include, among others, the strengthening of financial services through regulation, supervision, education, and consumer protection. Moreover, economic growth should be pursued by optimizing the role of the financial sector, said Mahendra Siregar. Another priority is to improve services and strengthen the capacity of OJK by accelerating an integrated licensing process and enhancing coordination with all stakeholders. The Chairman also highlighted the approach taken by OJK to ensure the creation of sustainable financing to spur economic growth. "The financial regulatory sector must play an important role in providing incentives and financial support to the Indonesian government's efforts in developing mainstream industries, such as nickels, to support the development of battery-powered electric vehicles," he said.
Photo Source: Indonesian Embassy in Seoul
In the talk show segment, the OJK Chairman also discussed the organization's current rules and policies, its goals for the future, and the different kinds of assistance it can offer to Korean financial institutions. The Chairman of the OJK and Ambassador Gandi also replied to some concerns addressed by several Korean financial companies, including improved facilitation for the licensing of foreign professional financial workers in Indonesia and the prospects for financial-linked products that could support the growth of downstream industries such as automobiles and motorcycles in Indonesia. Meanwhile, the Senior Deputy Governor underlined the FSS' readiness to collaborate and share Korea's experiences in developing the financial sector with Indonesia.
Photo Source: Indonesian Embassy in Seoul
Ardi Ferdiansyah, Acting Chief Executive of Bank Negara Indonesia Seoul, closed the forum by deliberating on the clear trajectory of Indonesia-Korea relations to expand their economic cooperation beyond investment and trade towards more advanced industries, including the financial industry. According to Ardi, this trajectory will capitalize on more significant roles for the financial companies from both countries to contribute to the economic development of Indonesia and South Korea.
The Business Forum on Financial Cooperation was the start of a series of activities to celebrate the 50th anniversary of Indonesia and Korea's diplomatic relations here in Korea, especially in the economic sector, organized by the Indonesian Embassy in Seoul. This year, many other activities will be carried out, including investment and trade forums, talk shows, sports activities, a book launch, and a gala dinner.
Photo Source: Indonesian Embassy in Seoul
Indonesia's stable financial market and investment environment have attracted foreign companies to enter the Indonesian market. Large corporations from Korea, including Hyundai Motor, LG, and Lotte Chemicals, are already doing great business in Indonesia. South Korea is the 7th largest investor in Indonesia in 2022, with a total of USD 2.29 billion, an increase of 40.06 % from investment realization in 2021.
Korean financial companies have also chosen Indonesia as their destination. 31 Korean financial companies have already operated in the Indonesian financial sector, such as banking, finance, insurance, securities, and asset management sectors. There are currently six Korean banks operating in Indonesia, including Hana Financial Group, KB Bank, Woori Bank, Shinhan Bank, IBK, and APRO. In addition, financial companies such as Mirae Asset and Hanhwa have a successful and strong presence in Indonesia, which can be an example for other Korean companies to expand their business in Indonesia.
The convening of this event is the first series of Business Forum that will be hosted by Indonesian Embassy in 2023, when Indonesia and South Korea are celebrating 50th anniversary of diplomatic relations. It is also a year that marks Indonesia's Presidency of ASEAN, launched in Jakarta last January by H.E. Mr. Joko Widodo, the President of Indonesia.
