By Kyu-seok Shim and Heejin Kim

SEOUL, April 1 (Reuters) - South Korean President Lee Jae Myung held talks on Wednesday with Indonesian leader Prabowo Subianto, discussing energy security and agreeing to expand cooperation in areas such as defence, Lee's office said.

The summit talks followed a welcome ceremony at the presidential Blue House in Seoul.

"We view Indonesia's stable role in supplying key energy resources such as LNG and coal as very reassuring," Lee said in a statement, calling for closer cooperation on energy supply and resource security amid the global uncertainty triggered by the conflict in the Middle East.

In a joint statement, South Korea and Indonesia pledged to accelerate the launch of high-level energy security dialogue and public-private cooperation channels, emphasising the need to keep global energy supply chains stable and minimise disruptions to the flow of energy and essential goods.

Indonesia is the world's largest exporter of thermal coal, while South Korea has been among the five biggest importers of the fuel in recent years, according to Korean government data.

South Korea also imported about 2.1 million tons of liquefied natural gas from Indonesia in 2025, data showed.

The Indonesian president arrived in Seoul from Japan where Jakarta agreed to step up coordination with Tokyo on energy security.

Prabowo described South Korea and Indonesia as natural partners with "complementary roles", pointing to South Korea's industrial and technological strengths and Indonesia's abundant resources and large market.

South Korea's exports to Indonesia stood at $7 billion in 2025, while imports were $11.3 billion, trade data showed.

Lee and Prabowo also oversaw the signing of multiple preliminary agreements, including support for projects in renewable energy and data centres as the countries elevate their relationship into a strategic partnership.

JOINT FIGHTER PROJECT

Prabowo, a former general, also said that strong defence capabilities were essential, saying peace and stability required "robust security and defence."

No deals were announced on defence cooperation, but in the joint statement the leaders confirmed the countries' joint project to develop South Korea's homegrown KF-21 fighter jet, underway for over a decade, is on track for completion in June 2026.

They committed to cooperate on a follow-up project - called IF-21 - as well as other defence items such as trainer aircraft, anti-tank guided missile systems and ammunition.

Korea Aerospace Industries last month said it was in talks with Indonesia on a potential sale of KF-21 fighter jets, but said no decisions had been made. Media reports said that Jakarta was considering purchasing an initial batch of 16 aircraft.

South Korea expects Indonesia to complete a payment related to the joint development programme by the end of this year, an official told Reuters.

The countries were expected to also strengthen cooperation in new growth areas such as artificial intelligence, infrastructure, shipbuilding, nuclear power, energy conversion, and cultural industries, the Blue House said in an earlier statement.

Posted by: Alma Angeles/NET25 News