In The Jakarta Post last month it was reported that over 1000 students in South Korea have enrolled to study the Indonesian language. It is a phenomenal number considering the less than obvious ties between the two countries and the declining penchant for the study of Asian languages by Australians. And this number is only the tip of the iceberg.

Indeed the number of Koreans studying Indonesian is rapidly escalating and growing in line with the attraction that South Korean industry and government see in Southeast Asia’s largest economy. There are an increasing number of partnership programs between South Korean universities and universities in Indonesia. Currently 48 South Korean universities have partnerships with the University of Indonesia (UI) alone, with the majority of more than 250 Indonesian language students at UI hailing from South Korea.

Koreans have clearly shown enthusiasm for learning the Indonesian language, and comprise most of the student body in Indonesian-language courses at UI. A number of Korean students also participate in an Art and Culture Fellowship program which is organised annually by the Ministry of Foreign Affairs. Starting from 2005, the foreign ministry has offered Indonesian language programs for diplomats from the ASEAN+3 countries. Korean students also participate in the Darmasiswa Program, a scholarship provided by the Ministry of Education and Culture of Indonesia to study in various universities in Indonesia.

The South Koreans see language literacy as both an imperative and an asset with South Korean students at the University of Indonesia saying they are ‘buying into the country’s growing opportunities’. There are more than 2,500 Korean companies operating in Indonesia and more than 30,000 Korean residents in Indonesia, which count as the biggest foreign community living in the country.

When President Joko “Jokowi” Widodo arrived in South Korea May 2016 for a state visit aimed at forging stronger economic cooperation between the two countries, South Korea ranked sixth in terms of realised foreign direct investment in Indonesia with US$188.92 million in the first quarter, according to data from the Investment Coordinating Board of Indonesia (BKPM). Trade figures put Indonesia’s exports to South Korea at $1.22 billion and imports at $1.44 billion during the January to March period of 2016.

South Korea is quickly capitalising on the strong purchasing power and the high labour skills of the middle class that has helped to transform the country’s consumer market. Big South Korean manufacturers are showing a thirst to relocate, or move their manufacturing hub for southeast Asia to Indonesia. In one of the largest indications of interest to date, Posco, South Korea’s biggest steelmaker, signed a $6bn deal in 2013 to build a plant in Indonesia with PT Krakatau Steel. Hankook Tire, the world’s seventh largest tyre maker, also built a $500m plant in Indonesia while LG Electronics is making the country a regional manufacturing hub.

Korean companies are expanding their presence in Indonesia and are identifying language literacy as an important factor for both professional relationship and commercial success. Song Ryun-gwang, an assistant general manager at LG International Corp., which entered the Indonesian market in 2007, said, Among the 65 Koreans working at our company’s overseas branches, we hired 25 in Indonesia, adding, “As the scale of our business expands, demand for Koreans who can speak Indonesian will increase as well.”

The South Koreans continue to be willing to put in millions of dollars into the country. Recently this year they delivered investment commitments totalling $9.7 billion consisting of investments in the petrochemical, renewable energy, red meat and livestock, pharmaceutical, and film and cinema industries. Parallel to this is the intensifying drive from the Koreans to ensure that their professional staff and the future stewards of the bilateral relationship learn the Indonesian language.

The Korean dynamic approach to Indonesia is in striking contrast to Australia’s perspective where, despite being a regional neighbour, Asian language study – particularly Indonesian – is in decline. Whilst the Ken Henry Report on the Asian Century is underpinned by the message of being able to “engage better”, this will clearly be a challenge if Australians do not have language skills commensurate with our vested and growing interest in Asian markets – especially our regional neighbour, Indonesia.

Article by Dr Kathleen Turner, Manager Strategy, Griffith Asia Institute.