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🇮🇩 Indonesia /Economy & Trade

Why South Korea Wants to Invest in Indonesian Shipyards

From Tempo · () Indonesian

Translated from Indonesian and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • South Korea is encouraging its shipbuilding companies to invest in Indonesia’s shipyard and repair sector.
  • Indonesia had about 342 active shipyards in the third quarter of 2025, with annual capacity of roughly 1 million DWT for new vessels and 12 million DWT for repairs.
  • Officials from both countries have linked shipyard cooperation to wider commitments in defense, energy and investment.

South Korea is looking to Indonesia’s shipyards as a place where Korean technology and Indonesian demand can meet. Uhm Taeho, political section chief and counselor at the South Korean Embassy in Indonesia, said the sector helped strengthen South Korea’s negotiations with the United States.

He pointed to Hyundai Shipyard, Hanwha Ocean and Samsung Heavy Industries as Korean companies with advanced shipbuilding technology. Speaking at an Indonesia-Korea Next Generation Journalist Network workshop, Taeho said Indonesia’s archipelagic geography created strong potential for shipbuilding and workforce development.

From Hyundai Shipyard, Hanwha Ocean, to Samsung Heavy Industries, we have the best shipyard companies with state-of-the-art technology

· Uhm TaehoThe South Korean embassy official cited major Korean shipbuilders while explaining the country’s interest in Indonesia’s shipyard sector.

The opportunity is supported by Indonesia’s existing industrial base. A report from the Industry Ministry’s Directorate General of Maritime Industry, Transportation Equipment and Defense Equipment said the country had approximately 342 active shipyards in the third quarter of 2025. Together, they could build about 1 million deadweight tonnes of new vessels a year and repair 12 million deadweight tonnes.

Our expertise and Indonesia's needs converge in this shipbuilding industry

· Uhm TaehoHe used the phrase to describe the basis for stronger economic cooperation between the two countries.

Several Korean companies have already visited Indonesia to examine opportunities, Taeho said. South Korean shipyard operators have also worked with countries including the Philippines and Vietnam, while exploring possible cooperation with India and Indonesia.

Shipyard investment forms part of the wider Special Comprehensive Strategic Partnership. Indonesian Foreign Minister Sugiono and South Korean Foreign Minister Cho Hyun agreed in July to accelerate existing commitments in defense, energy and investment. Cho said he would encourage South Korean companies to invest in Indonesia’s shipyard industry, while Sugiono said Indonesia was ready to pursue concrete cooperation.

Indonesia is ready to continue to work closely with the Republic of Korea to produce concrete cooperation

· SugionoIndonesia’s foreign minister made the statement during bilateral talks on implementing the two countries’ strategic partnership.
About this summary

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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