Korea’s E-Government Cooperation Center Newly Opened in Jakarta

Exports of Korea’s e-government systems to Southeast Asia are expected to grow further as Korea gains a stronger foothold in Indonesia.

The Ministry of the Interior of the Republic of Korea announced that the Korea-Indonesia E-Government Cooperation Center opened on March 2 with the presence of government officials and IT leaders of the two countries, including Minister Hong, Yun-sik of the Interior of Korea and Minister Yuddy Chrisnandi of Administrative Reform and Bureaucratic Reform of Indonesia.

The E-Government Cooperation Center was established, following the Korea-Indonesia summit between Korean President Park Geun-hye and Indonesian President Joko Widodo in December 2014 where the two leaders discussed how to strengthen the bilateral cooperation between the two countries in the field of e-government.

After the summit, Indonesian Minister Chrisnandi first proposed to open the Cooperation Center in Indonesia. Later, Korea and Indonesia signed a memorandum of understanding to establish the Cooperation Center in the occasion of their second joint committee meeting for e-government cooperation held last August.

The Cooperation Center is on the fourth floor of the government building that is occupied by the Indonesia Ministry of Administrative Reform and Bureaucratic Reform, and will be run for three years until December 2018. The Center will play an important role in joint e-government projects between the two countries as they send out to each country public officials and experts specialized in e-government and conduct an e-government capacity-building programme as well as joint studies and consulting projects concerning online government.

The Cooperation Center in Jakarta is especially significant because the Indonesian government chose Korea as its partner country in its key policy efforts to reform public administration through strengthening its e-government capacity.

Also, despite the heated competition of global companies in the Indonesian market, exports of Korea’s e-government systems to Indonesia and beyond to Southeast Asia are expected to grow as the Cooperation Center serves as a platform for close communication between the two countries.

This specific cooperation model was also adopted in Uzbekistan in the past. After a cooperation center opened in Uzbekistan in 2013, Korea’s export volume of e-government systems to the country exceeded 185 million US dollars after recording only US$1,500 up until 2012. Kyrgyzstan, Uzbekistan’s neighboring country, adopted an electronic election system from Korea in 2015, adding about three million US dollars to the export volume.

Korea’s e-government made inroads into Indonesia in 2007 as Indonesia adopted an electronic patent system from Korea. Since then, Korea has gained a foothold in the country as it exported its national financial management system in 2009 (US$ 43 million) and its public security management system in 2015 (US$ 72 million).

Despite much progress made in Indonesia and in other Southeast Asian countries, Korea can do a lot better in the region. The region has great potential for growth thanks to its rich natural resources and talented people; however, due to some problems like limited efficiency in the public sector, its full potential has not been unleashed. The Cooperation Center in Indonesia is expected to spur Korea’s export volume of e-government systems not only in Indonesia but in the entire region.

On the same day in the afternoon after the Cooperation Center opened, Korean Minister Hong met with over 150 Indonesian government officials responsible for bureaucratic reform and e-government development, and delivered a presentation on Korea’s successful experience and knowhow in developing advanced e-government. His presentation was titled “Government Innovation in Korea.”

Korean businesses are also counting on the Cooperation Center. At a business forum for ICT businesses in Indonesia, also held on March 2, Mr. Oh Seung-hwan, chairman of a Korean ICT business association in Indonesia, stated, “The hardest part of doing business abroad is to forge a working relationship with local government.” Mr. Oh expressed his hope, saying “The Cooperation Center would serve as a bridge between the Indonesian government and Korean ICT businesses.”

Minister Hong of the Interior commented, “The E-Government Cooperation Center in Indonesia will further develop its e-government and contribute to one of President Widodo’s key campaign agenda, which is making the Indonesian government more transparent and efficient.” He then continued, “I hope that the Cooperation Center would play a key role in helping more Korean ICT businesses to make inroads in Southeast Asia as well as in Indonesia.”