Here’s Why South Korea Is Keen on Investing in Indonesian Shipyards
South Korea has set its sights on Indonesia’s shipyard industry, considering an investment commitment in shipbuilding and repair. This initiative is part of the Special Comprehensive Strategic Partnership (SCSP) between the two nations and was a key point of discussion during the Indonesia-South Korea High-Level Conference held in April 2026.
Potential for Growth in Indonesia’s Shipbuilding Sector
Uhm Taeho, the Political Section Chief and Counselor at the South Korean Embassy in Indonesia, highlighted the significance of shipyards in strengthening negotiations with the United States. He emphasized the expertise of leading South Korean shipyard companies such as Hyundai Shipyard, Hanwha Ocean, and Samsung Heavy Industries during the Indonesia-Korea Next Generation Journalist Network (IKJN) workshop on August 26, 2026.
Taeho pointed out that Indonesia’s archipelagic nature presents significant potential for the shipbuilding industry and the development of its workforce. He emphasized the need for new collaborative opportunities to enhance the economic relationship between Indonesia and South Korea.
Current Landscape of Indonesia’s Shipyard Industry
According to the Directorate General of Maritime Industry, Transportation Equipment, and Defense Equipment (IMATAP) at the Ministry of Industry, Indonesia boasts approximately 342 active shipyards as of the third quarter of 2025. These shipyards have a combined capacity of around 1 million Deadweight Tonnage (DWT) per year for new shipbuilding and 12 million DWT per year for repairs.
Taeho revealed that several Korean companies have already visited Indonesia to explore development opportunities in the shipbuilding industry. South Korean shipyard operators have also engaged in collaborations with other Asian countries like the Philippines, Vietnam, and are now eyeing partnerships with India and Indonesia.
Bilateral Commitments and Cooperation
The implementation of the SCSP took center stage during a bilateral meeting between Indonesian Foreign Minister Sugiono and his South Korean counterpart, Cho Hyun, on the sidelines of the 59th ASEAN Foreign Ministers’ Meeting/Post Ministerial Conferences (AMM/PMC) in Manila, the Philippines, on July 22, 2026.
Both ministers expressed readiness to work closely to solidify concrete cooperation, including in defense, energy, and investment sectors. Cho Hyun reiterated South Korea’s commitment to encouraging its companies to invest in Indonesia’s shipyard sector, further strengthening the economic ties between the two nations.
By leveraging the shared expertise and needs in the shipbuilding industry, Indonesia and South Korea aim to foster a mutually beneficial partnership that drives growth and innovation in the maritime sector.
