The Government of South Korea (SK) will increase the ceiling on low-interest rate loans to Indonesia by more than half over the next five years in order to boost bilateral cooperation between the two countries. Under the agreement, the Economic Development Cooperation Fund (EDCF) will be increased to USD1.5 billion for the period of 2022-2026 from the existing USD600 million allocated for the period between 2016-2021.

The Government of South Korea has also selected 22 potential infrastructure projects in Indonesia to be funded by the EDCF and will also promote the involvement of South Korea-based companies in the development of these projects. The EDCF program was launched in 1987 in an attempt to support economic and social infrastructure projects in developing nations.