INNOPROM opens new doors for Indonesia's industry in Eurasia

Moscow, Russia (ANTARA) -

Killing two birds with one stone is a common saying describing Indonesia’s efforts during participation at the 2026 International Industrial Exhibition (INNOPROM).

The largest industrial exhibition in Russia and the Eurasian region offers an opportunity for Indonesia to expand industrial cooperation while opening access to previously underdeveloped non-traditional markets.

Through its status as an Official Partner Country, Indonesia not only showcases its domestically manufactured products but also creates opportunities for investment, technology transfer, and export market expansion across the Eurasian region, which offers substantial economic potential.

Amidst the changing global trade landscape, Indonesia's presence at the region's largest industrial exhibition provides momentum to introduce the upgraded national industry, emerging as a prominent global partner.

The government, through the Ministry of Industry, is utilizing the event, which took place in Yekaterinburg, Russia, from July 6–9, 2026, by bringing dozens of industrial players from various strategic sectors.

They range from the metal, machinery, transportation equipment, and electronics (ILMATE) industry, creativity-based manufacturing, and the agro-food processing industry.

Their participation highlights Indonesia's manufacturing capabilities to buyers, investors, distributors, and industry stakeholders from member states of the Eurasian Economic Union (EAEU).

The Indonesian pavilion features a wide range of manufacturing innovations, including artificial intelligence (AI), virtual reality, RFID technology, drones, solar energy solutions, shipbuilding and maritime components, iron and steel products, and industrial machinery.

Value-added products that combine innovation, technology, and Indonesia's rich culture are also introduced as a new face of national manufacturing.

Minister of Industry Agus Gumiwang Kartasasmita believes that participation in INNOPROM 2026 demonstrates the capacity of the national manufacturing industry to continue to grow and is increasingly competitive in the global market.

According to him, Indonesia aims to position itself not merely as a large market, but as an industrial partner capable of delivering innovation, technology, and high-value-added manufactured products for shared growth and progress.

This progress is reflected in the performance of the metal, machinery, transportation equipment, and electronics industries, which continue to post a positive performance.

In the first quarter of 2026, this sector grew 4.28 percent annually, contributing 4.28 percent to the national Gross Domestic Product (GDP), or nearly a quarter of the total GDP of the non-oil and gas processing industry.

Realized investment, reaching Rp90.48 trillion (US$4.8 billion), also demonstrates the high level of business optimism regarding the sector's prospects.

As one of the backbones of Indonesia's manufacturing transformation, the ILMATE sector features 19 companies and institutions operating in digital technology, the metal industry, shipbuilding, maritime components, cables, solar energy, drones, smart farming, and industrial equipment manufacturing.

Indonesia's industrial cooperation with Eurasian countries in this sector continues to expand, as exemplified by the signing of a Non-Disclosure Agreement (NDA) between PT PAL Indonesia and Russia's Rosatom in April 2026, marking the beginning of a collaboration in the development of world-class maritime technology and engineering.

Besides promoting high-tech industries, Indonesia is also showcasing its creativity-based manufacturing capabilities.

Six national industry players brought batik products and batik machines, geospatial survey services, drone technology, specialty coffee, home decor, and fashion and textile products to the exhibition.

The government views these products as competitive for their ability to deliver quality and innovation while incorporating added value through creativity, sustainability, and Indonesian cultural identity.

Strong Confidence

Optimism about capturing the vast potential of the Eurasian market is strengthened by the implementation of the Indonesia–Eurasian Economic Union Free Trade Agreement (I-EAEU FTA).

The agreement, signed at the end of 2025, provides preferential tariffs on approximately 90.5 percent of trade tariff lines with EAEU countries, namely Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia.

This collaboration and Indonesia's participation in INNOPROM open up wider opportunities for domestic manufactured products to enter the Eurasian market.

The ministry’s Director General of Small, Medium, and Miscellaneous Industries (IKMA), Reni Yanita, said the implementation of the agreement presents a strategic opportunity for national industry players to expand their business networks and build long-term partnerships.

She views Indonesian manufactured products as possessing unique characteristics because they combine a strong cultural identity, skills passed down across generations, and production capabilities that continue to evolve to meet global standards. One market considered particularly promising is furniture and crafts.

Demand for premium furniture in Russia, for example, continues to increase along with the growing demand for products with personalized designs and environmentally friendly materials, characteristics that have long been the strengths of the Indonesian furniture industry.

Beyond the specialized manufacturing sector, Indonesia also showcases its strengths in the agro- and food-processing industries.

The agro-industry is a crucial sector, contributing more than half of the GDP of the non-oil and gas processing industry in the first quarter of 2026, with growth reaching 5.70 percent, exceeding the national economic growth average.

In addition to employing around 10 million people, this sector also recorded exports of US$18.92 billion, with a trade surplus of US$13.78 billion.

Indonesia's strengths lie in tropical commodities and the value-added food industry, while Russia excels in modern agricultural technology, food logistics, fermentation, preservation, and agricultural biotechnology.

The combination of these two strengths is believed to foster mutually beneficial industrial collaboration.

At the INNOPROM event, both countries also signed a new Memorandum of Understanding (MoU) in the industrial sector.

The agreement covers technical and commercial cooperation involving various business actors, including the Indonesian Shipbuilding and Offshore Industry Association (IPERINDO), PT PCM Kabel Indonesia, and PT Athira Maritim Indonesia.

Followed by MoUs between the Indonesian Ship Component Industry Association (PIKKI) and United Industrial Corporation AK Bars, PT Minang Jordanindo with CHETRA LLC, and the Indonesian Industrial Estate Association (HKI) with the Association of Clusters, Technology Parks, and Special Economic Zones of the Russian Federation (ACTPRF).

Indonesia's participation as the Official Partner Country at INNOPROM 2026 represents more than a product showcase. It reflects the growing confidence of Indonesian manufacturers in entering non-traditional markets, expanding global industrial partnerships, and reinforcing their position as innovative, competitive, and trusted industrial partners.

If these opportunities lead to investment, technology transfer, and long-term trade agreements, they will generate benefits beyond the industrial sector by creating jobs, strengthening the foundation for achieving 8 percent economic growth by 2029, and advancing Indonesia's ambition to become one of the world's five largest economies.

Related news: Industry Ministry sees INNOPROM as key for Eurasian market opportunity

Related news: Indonesia bolsters industrial ties with Eurasia in INNOPROM 2026

Related news: Indonesia eyes Eurasian partnership for major infrastructure projects

Translator: Ahmad Muzdaffar, Resinta Sulistiyandari

Editor: Azis Kurmala

Copyright © ANTARA 2026