South Korea and Indonesia agreed Wednesday to expand economic ties amid the realignment of the global supply chain and seek growth based on green technologies, the finance ministry said.

The agreement came as Finance Minister Choo Kyung-ho met his Indonesian counterpart, Sri Mulyani Indrawati, on the margins of the 56th Annual Meeting of the Board of Governors of the Asian Development Bank held in Incheon, 27 kilometers west of Seoul, the Ministry of Economy and Finance said.

During the meeting, Choo noted South Korean companies have invested in a diverse range of sectors in Indonesia, including the automobile, battery and petrochemical industries.

He requested Jakarta continue its efforts to address possible economic challenges for Korean companies, such as lowering tariffs for raw materials.

The two countries also agreed to expand cooperation in the green sector by utilizing South Korea's Economic Development Cooperation Fund commitment to Indonesia.

Last year, South Korea decided to more than double the ceiling on the low-interest rate loans to Indonesia to US$1.5 billion over the 2022-26 period, compared with the previous $600 million set aside for 2016-21.

First Vice Finance Minister Bang Ki-sun, meanwhile, held a separate meeting with Bambang Susantono, who heads Indonesia's ministry-level organization tasked with the Southeast Asian nation's envisioned relocation of its capital from Jakarta to Nusantara.

During the meeting, Bang requested Indonesia give attention and support to South Korean firms wishing to participate in the infrastructure projects needed for the relocation.

Indonesia plans to invest around 40 trillion won ($29.9 billion) for the relocation, which is expected to be completed in 2045.

South Korea and Indonesia celebrate their 50th anniversary of forging diplomatic ties this year.

Source: Yonhap News Agency