ASIATODAY.ID, YEKATERINBURG — Indonesia and Kazakhstan have signed a strategic industrial cooperation agreement aimed at accelerating investment, expanding manufacturing partnerships, and strengthening supply chain connectivity between Southeast Asia and Eurasia.
The Memorandum of Understanding (MoU) marks a new chapter in bilateral economic relations, creating a framework for cooperation in machinery manufacturing, automotive industries, industrial products, metallurgy, downstream mineral processing, technology transfer, and industrial development.
The agreement was signed during a bilateral meeting between Indonesia’s Minister of Industry Agus Gumiwang Kartasasmita and Kazakhstan’s Minister of Industry and Construction Ersaiyn Nagaspaev on the sidelines of Indonesia’s participation as the Official Partner Country at INNOPROM 2026.
“Indonesia views Kazakhstan as a strategic partner in Central Asia and Eurasia, as well as a potential gateway for Indonesian industrial products to reach a broader Eurasian market,” Minister Agus said.
He emphasized that Indonesia seeks to transform bilateral relations into concrete, mutually beneficial industrial projects that create value for both economies.
The MoU encourages joint investment projects, industrial localization, cooperation among companies, business forums, industrial park development, and human resource development through technology and skills exchange.
Growing Trade and Investment Opportunities
Economic ties between Indonesia and Kazakhstan have continued to strengthen. Bilateral non-oil and gas trade reached US$172.2 million in 2025, while trade during January–April 2026 surged 62.5 percent year-on-year to US$138 million.
Indonesia’s exports to Kazakhstan totaled US$114.4 million in 2025, growing 26.7 percent compared with the previous year. Major Indonesian exports include electronics, machinery, palm oil and derivatives, tobacco products, and footwear.
Meanwhile, Indonesia imports key commodities from Kazakhstan, including iron and steel, zinc, chemicals, and cotton.
The complementary nature of both economies provides a strong foundation for expanding industrial collaboration, investment flows, and regional supply chain integration.
Building a Bridge Between Southeast Asia and Eurasia
The two countries also discussed the implementation of the Indonesia–Eurasian Economic Union Free Trade Agreement (I-EAEU FTA), which is expected to open wider market access and strengthen economic cooperation once the ratification process is completed.
Future cooperation priorities include trade, investment, energy, critical minerals, food security, digital transformation, and artificial intelligence.
Indonesia’s participation at INNOPROM 2026 has provided a strategic platform to showcase national manufacturing capabilities, downstream industries, and investment opportunities to global industrial players.
Through this partnership, Indonesia and Kazakhstan aim to develop stronger industrial linkages, expand technology collaboration, and create new opportunities for businesses in both regions. (AT Network)
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