South Korea’s Hyundai Motor signed a business deal to set up a commercial vehicle joint venture with Indonesia’s Artha Graha Group to tackle the Southeast Asia market, the company said Tuesday.

The joint venture marks the first outcome in the private business sector of President Moon Jae-in‘s New South Policy introduced during the Asia-Pacific Economic Cooperation summit last month. The initiative aims to expand economic cooperation and personnel exchanges between South Korea and Southeast Asian nations.

“Hyundai will fully support the Indonesia joint venture to bridge cooperation of the two economies,” Lee In-cheol, senior vice president of Hyundai’s commercial vehicle export division said.

“Starting with the Indonesian market, we will accelerate expansion into nearby countries.”

The signing ceremony was attended by Lee, AG Group Vice Chairman Iki Wibowo, Indonesian Ambassador to Korea Umar Hadi and others at the Indonesian embassy in western Seoul.

Established in 1973, AG Group is the 10th largest conglomerate in Indonesia that mainly manages property, finance, agro industry and hospitality sectors.

The share ratio of the venture has not yet been finalized, Hyundai said.

According to the agreement, Hyundai and AG Group will set up a corporate body in Jakarta, Indonesia in May 2018. It will manage production, sales, after sales service and so on.

Hyundai vowed to expand its presence in Indonesia’s auto market, which Japanese auto makers currently make up over 90 percent.

Products will be produced from complete knock-down kits at a plant that is equipped with facilities designed for Hyundai‘s commercial vehicles to minimize cost and risk, Hyundai said.

About 2,000 commercial vehicles will be made there annually starting in the second half of next year.

Hyundai added, it has high expectations for the Southeast Asia market, which currently levies up to 80 percent in tax on Korean vehicles. But those produced in Indonesia can be exported customs-free due to the ASEAN Free Trade Area.