ASIATODAY.ID, JAKARTA — Russia has expressed strong readiness to deepen strategic industrial cooperation with Indonesia, including the development of the national shipbuilding industry, a move expected to accelerate investment inflows, facilitate technology transfer, and strengthen small and medium-sized industries (SMEs).
The commitment was underscored by Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita during a bilateral meeting and the opening of the Indonesia–Russia Business Matching Forum, organized by the Ministry of Industry of the Republic of Indonesia in Moscow in early December 2025.
“Bilateral relations between Indonesia and Russia have evolved toward a more substantive and comprehensive partnership, particularly following the meeting between President Prabowo Subianto and Russian President Vladimir Putin at the Kremlin. This has significantly strengthened coordination and opened wider opportunities for strategic industrial cooperation,” the minister said in a statement released in Jakarta on Friday, December 12, 2025.
Indonesia–Russia Trade and Investment Continue to Rise
According to the minister, economic cooperation between the two countries has shown a strong upward trend. In 2024, bilateral non-oil and gas trade reached USD 3.9 billion, marking an 18.69 percent increase compared to 2020. As of October 2025, total trade volume further expanded to USD 4.04 billion.
Russian investment in Indonesia has also grown steadily. In 2024, total investment reached USD 262.7 million, while as of September 2025, investment realization stood at USD 147.2 million.
“These figures reflect a high level of confidence among Russian investors in Indonesia’s economic stability and long-term industrial potential,” Agus emphasized.
Indonesia and Russia are currently finalizing two key industrial cooperation documents: the Memorandum of Understanding (MoU) on Cooperation in the Field of Shipbuilding, and the MoU on Scientific Research on the Safe Use of Chrysotile Asbestos.
The MoU on chrysotile asbestos safety research was officially signed by Minister Agus and Russia’s Minister of Industry and Trade Anton Alikhanov in Moscow on December 8, 2025.
“We expect the shipbuilding MoU to be completed soon to provide a clear and reliable framework for collaboration between large industries and SMEs in both countries,” Agus stated.
Addressing Technical and Logistics Challenges
The minister highlighted the importance of intensive dialogue to overcome technical barriers, particularly high logistics costs due to geographical distance.
He welcomed the outcomes of the 6th Working Group on Trade, Investment and Industry, held on March 11–12, 2025, as part of the Indonesia–Russia Joint Commission Meeting in Jakarta in April 2025.
The forum produced concrete agreements covering industrial cooperation, halal supply chains, trade facilitation, logistics, standardization, certification, agriculture, and financial services.
Accelerating the Indonesia–EAEU Free Trade Agreement
Indonesia also reaffirmed its strong support for the swift conclusion of the Indonesia–Eurasian Economic Union Free Trade Agreement (I–EAEU FTA). The agreement is expected to significantly enhance market access for Indonesian industrial products through tariff competitiveness and reduced non-tariff barriers.
“This agreement will serve as a vital instrument to strengthen supply chain resilience and expand the penetration of Indonesian industrial products across the Eurasian region,” Agus said.
Strengthening BRICS Cooperation
Within the multilateral framework, Indonesia reiterated its commitment to active participation in BRICS, particularly through the BRICS Centre for Industrial Competences (BCIC). Cooperation under BCIC will focus on industrial digitalization, next-generation mobility technologies, unmanned transportation, industrial human resource development, SME empowerment, artificial intelligence, digital transformation, and bio-industry.
“We see BCIC as a strategic platform for technology transfer and the acceleration of Indonesia’s industrial modernization toward a smart, green, and inclusive industrial ecosystem,” he added.
Business Matching Delivers Tangible Outcomes
The bilateral agenda was further strengthened by the Indonesia–Russia Business Matching Forum, which brought together government officials and business leaders from both countries. The forum promoted Indonesia’s strategic industrial sectors while opening opportunities for joint manufacturing, investment, and technology transfer.
A total of 19 participants from nine Indonesian companies and 51 Russian participants attended the event. The forum resulted in the signing of memoranda of understanding between the Indonesian Industrial Estates Association (HKI) and two Russian institutions: the Foreign Trade Center (FTC) of Russia and the Association of Industrial Parks (AIP) of Russia.
These agreements aim to facilitate investment promotion, trade missions, industrial visits, roadshows, and structured information exchange to enhance the competitiveness of industrial estates in both countries.
Indonesia to Serve as Partner Country at INNOPROM 2026
Minister Agus also highlighted Indonesia’s readiness to serve as Partner Country at INNOPROM 2026, Russia’s largest international industrial exhibition, scheduled for July 6–9, 2026.
“INNOPROM 2026 will be a strategic moment to showcase Indonesia’s manufacturing strength to the Russian and global markets, while fostering new industrial partnerships and business opportunities,” he concluded. (AT Network)
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