(KPL/Yonhap) President Lee Jae Myung and Indonesian President Prabowo Subianto on Wednesday agreed to expand defense industry cooperation by leveraging the joint development of the KF-21 fighter jet and work together to ensure stable energy supply chains amid the war in the Middle East.

During their summit talks, the two leaders agreed to elevate their special strategic partnership to a special comprehensive strategic partnership, the highest level of bilateral relations short of a formal alliance, to further advance cooperation across a wide range of areas.

They noted that the joint KF-21 development program, known as the IF-X project in Indonesia, is scheduled for completion in June after more than a decade of development.

"(They) expressed their commitment to cooperation on the KF-21 production project and their expectations for the continued progress of other defense industry cooperation projects, including collaboration on trainer aircraft anti-tank guide missile systems, and ammunition," a joint statement said.

Republic of Korea launched the KF-21 program in 2015 to develop a homegrown supersonic fighter jet, and Indonesia joined as a partner, agreeing to share development costs in exchange for technology transfers, a prototype and other conditions.

Seoul plans to sign a deal to export 16 units to Indonesia, which would mark the country's first overseas sale of its homegrown fighter jets.

Building on the momentum from the fighter jet program, the leaders committed to further expanding cooperation in defense and security, including joint research and development, and production.

As the summit took place amid growing uncertainty over oil and gas supplies following the outbreak of the Middle East conflict, Lee asked Prabowo to expand cooperation on resource supply chains between the two nations.

Lee said the prolonged war in the Middle East is likely to cause concerns about a "big impact" on energy supplies for both Republic of Korea and Indonesia, noting the two nations "need to expand cooperation on resource security to minimize the impact of this crisis," according to a pool report.

Lee highlighted the Southeast Asian nation's role in supplying key energy resources, such as liquefied natural gas (LNG) and coal. Indonesia is the sixth-largest LNG supplier to Republic of Korea, which heavily relies on imports from the Middle East.

Noting Korean firms' participation in Indonesia's electric vehicle (EV) production, Lee expressed hope to expand cooperation on future projects in advanced industries, including shipbuilding and artificial intelligence (AI).

The leaders also reaffirmed their commitment to cooperation in developing Indonesia's EV ecosystem, ranging from the local production of EV batteries and battery recycling to strengthening the EV supply chain, according to the statement.

Prabowo emphasized the importance of bilateral ties amid rising global uncertainties, expressing hope that the two countries will complement each other as partners with shared interests.

He noted that Republic of Korea's advanced manufacturing capabilities and technology could align with Indonesia's abundant resources and market, while also stressing the need to strengthen cooperation in security and the defense industry.

During the summit, the two countries signed 10 memorandums of understanding (MOUs) to deepen economic ties and expand cooperation in areas such as critical minerals, advanced technologies, AI-based health care and intellectual property rights, among others.

Additional agreements focused on expanding cooperation in renewable energy, nuclear energy and the joint development of carbon capture and storage technologies.

Separately, the state-run Export-Import Bank of Korea and Danantara Investment Management, Indonesia's sovereign wealth fund, agreed to cooperate on financing to support Korean companies' entry into Indonesia in promising sectors, including critical minerals, data centers and renewable energy.

During the talks, the two leaders also discussed regional security issues, with Prabowo expressing support for Seoul's efforts to improve ties with Pyongyang and promote peace on the Korean Peninsula, while committing to active cooperation at both bilateral and multilateral levels.

"The two leaders reaffirmed their commitment to the complete denuclearization of the Korean Peninsula, and to lasting peace and stability in the region," the statement said.

In their second meeting following their talks on the sidelines of the APEC summit in Republic of Korea in November, Lee awarded Prabowo the Grand Order of Mugunghwa, South Korea's highest honor, in recognition of his contributions to strengthening bilateral ties, including support for Korean companies operating in the Southeast Asian nation, Cheong Wa Dae said.

Lee presented Prabowo with a traditional Korean bow set and a martial arts book from the Joseon Dynasty (1392-1910), reflecting the Indonesian president's strong interest in martial arts, shaped by his background as a former Army general and defense minister, Cheong Wa Dae added.

KPL