Indonesia aims to be industrial partner, not just market: minister

Yekaterinburg, Russia (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita emphasized that Indonesia is no longer positioning itself merely as an export destination or raw material supplier, but rather as a strategic partner in global industrial development.

Speaking Tuesday (July 7) at the Russian-Indonesian Industrial Dialogue Business Forum during the INNOPROM 2026 exhibition in Yekaterinburg, Russia, the minister pitched a wide array of industrial and investment opportunities to Russian business leaders.

“Indonesia is not a country that only relies on commodities and is looking for buyers. Indonesia is an industrial country that is looking for partners,” Minister Agus remarked.

He noted that the manufacturing industry has become the backbone of the Indonesian economy, demonstrating resilient performance despite various global challenges.

In the first quarter of 2026, Indonesia's manufacturing sector grew by 5.04 percent, marking an increase from the 4.55 percent growth recorded in the same period of the previous year.

The manufacturing industry contributes nearly one-fifth of the national GDP, generates over 83 percent of the country's total export value, and employs more than 20 million workers.

According to the minister, bilateral economic relations between Indonesia and Russia continue to strengthen.

In 2025, total bilateral trade reached US$4.8 billion, a 5.4 percent year-on-year increase, while Indonesian exports to Russia grew by 7.5 percent to US$1.8 billion.

He explained that the trade structures of the two countries are highly complementary, with Indonesia exporting rubber, coffee, footwear, electronics, and chemicals, while Russia supplies fertilizer, steel, cereals, and aerospace products.

This complementary nature serves as a strong foundation for boosting value-added industrial cooperation, technology mastery, and investment.

“Let’s build together, not just sell each other’s products,” Agus urged.

The minister also encouraged a reciprocal, two-way investment relationship.

The Indonesian government hopes national manufacturing firms can expand their footprints in Russia, particularly in the halal food, cosmetics, and pharmaceutical sectors, utilizing Russia and Eurasia as entry points to Central Asia.

Vice versa, Indonesia offers a strategic gateway for Russian companies seeking to access the vast ASEAN market of over 700 million consumers.

To support successful industrial cooperation, Agus added that robust financial systems and secure payment mechanisms are required.

He concluded that the government has prepared financial support through the Indonesian Export Financing Institute (LPEI) and is actively promoting the use of Local Currency Settlement (LCS) as well as the BRICS payment mechanism to facilitate seamless business transactions.

“Indonesia is present as a partner for Russia... Indonesia is keen to develop together, starting from resource processing and manufacturing processes to the entire well-formed ecosystem,” Minister Agus stated.

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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa

Editor: Azis Kurmala

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