Report

Institute for Future Strategy, Seoul National University — Economic Security Cluster
Qualitative Analysis Team Report (12 Countries)
Indonesia’s Economic Security

The Economic Security Cluster at the Institute for Future Strategy (IFS), Seoul National University formed a research team composed of current and former officials from the Ministry of Foreign Affairs to evaluate and summarize the economic security landscape of twelve major countries closely connected to Korea.

This report analyzes Indonesia’s economic security and proposes strategies for Korea–Indonesia cooperation from an economic security perspective. Indonesia, the world’s fourth most populous nation and the largest Muslim-majority country, is a resource-rich economy and a key partner that shares Korea’s values of market economy, democracy, and the rule of law. In recent years, Indonesia’s strategic importance has increased as a major supplier of raw materials and critical minerals, and its role as a central actor within ASEAN has further expanded the scope of bilateral cooperation in the realm of economic security.

A SWOT analysis of Korea–Indonesia economic security cooperation reveals the following:

• Strengths: The Special Strategic Partnership between the two nations, abundant reserves of raw materials and critical minerals, and a growing manufacturing base.

• Weaknesses: Poor infrastructure and logistics, persistent policy and regulatory uncertainty, and a tendency toward resource nationalism.

• Opportunities: A vast consumer market, proactive government efforts to attract new industries, and progress in ASEAN’s economic integration.

• Threats: Geopolitical risks amid U.S.–China tensions and tightening environmental and ESG-related regulations.

From an economic security perspective, cooperation with Indonesia can be pursued along four key strategic directions:

1. Positioning Indonesia as a core ASEAN partner in the post-China era;

2. Establishing ASEAN-based industrial hubs in sectors where Korea maintains technological advantages (e.g., electric vehicles and batteries);

3. Building a strategic alliance for securing critical minerals;

4. Expanding high value-added cooperation targeting Indonesia’s large and growing consumer market.
   
   

Keywords:
Indonesia, economic security, Korea–Indonesia cooperation, supply chain restructuring, critical minerals, ASEAN, strategic partnership, EV and battery industries, high value-added cooperation