Indonesia and South Korea Sign MoU on Offshore Energy Services Cooperation
Indonesia and South Korea have agreed to deepen cooperation in offshore energy services through a new memorandum of understanding (MoU) covering technology development, workforce training and the reuse of decommissioned offshore platforms. The agreement, exchanged during a meeting between President Prabowo Subianto and South Korean President Lee Jae Myung in Seoul on 1 April, is intended to strengthen bilateral collaboration in offshore infrastructure while supporting the transition towards more sustainable energy systems.
According to official reporting on the agreement, the partnership will focus on expanding offshore plant service capabilities and facilitating closer cooperation between government institutions and industry stakeholders in both countries.
Focus on Technology Transfer and Workforce Development
The MoU covers collaboration in several areas, including offshore technology development, skills training and the dismantling and repurposing of oil and gas platforms once operations have ended. Indonesian officials view these areas as central to strengthening domestic capabilities while encouraging knowledge exchange with international partners.
“This MoU will strengthen synergy between Indonesia and Korea in developing offshore installation services, including technology transfer, capacity building, and platform reutilization,” — Airlangga Hartarto, Coordinating Minister for Economic Affairs, Indonesia
The agreement is set to run for five years and can be renewed by mutual consent. It also aims to encourage coordination between public institutions and private sector participants, reflecting the growing role of industry partnerships in large-scale infrastructure and energy projects.
Opportunities for Indonesian Energy Companies
Indonesian energy firms, including state-owned company Pertamina as well as private operators, are expected to have opportunities to participate in joint initiatives under the framework. The collaboration may support the development of specialised offshore services and strengthen Indonesia’s position within regional energy supply chains.
The initiative aligns with Indonesia’s broader strategy of promoting technology-driven development across sectors, including energy and infrastructure. Similar policy priorities are reflected in national programmes emphasising smart technology and innovation for sustainable growth, as the country expands its role in regional industrial and technological ecosystems.
Repurposing Offshore Platforms for New Energy Uses
One area of focus is the reuse of decommissioned offshore platforms. Instead of being fully dismantled, some installations may be converted into infrastructure such as liquefied natural gas (LNG) receiving terminals or facilities supporting carbon capture and storage (CCS).
Such repurposing initiatives are increasingly being explored globally as governments and energy companies seek to reduce decommissioning costs while supporting emerging low-carbon technologies.
“This collaboration underscores the commitment of both countries to promoting sustainable economic development, while strengthening Indonesia’s position as a strategic player in the global energy industry,” — Airlangga Hartarto, Coordinating Minister for Economic Affairs, Indonesia
Supporting Regional Energy Transition
Although the MoU does not create binding international obligations, it establishes a framework for deeper strategic engagement between the two countries in offshore services and energy infrastructure development. Officials view the agreement as part of a wider regional effort to modernise energy systems while adapting to the demands of the global energy transition.
Indonesia has been expanding its industrial and technological capabilities across multiple sectors, including through initiatives that strengthen digital infrastructure and support local enterprises. These broader efforts, such as programmes aimed at advancing digital infrastructure and MSME development, are intended to reinforce the country’s long-term economic resilience and innovation capacity.
