Indonesia Trade

Russian, Indonesian Trade & Industry Ministries Sign Co-Operation Agreements

Published on July 8, 2026

The Russian Trade and Industry Ministry and the Indonesian Industry Ministry have signed a memorandum of understanding in the industrial sector, which will establish a regulatory framework for cooperation in priority areas.

The signing took place during the Innoprom 2026 forum is currently taking place in Ekaterinburg. The memorandum was signed by Russian Trade and Industry Minister Anton Alikhanov and Indonesian Industry Minister Agus Gumiwang Kartasasmita.

Alikhanov said that Russia and Indonesia already have an example of implementing a joint project for producing medical equipment in the country using Russian technologies. Russian pharmaceutical companies that supply their products to Indonesia are currently negotiating with Indonesian partners on localizing production.

Alikhanov added that the countries have also intensified their dialogue on shipbuilding. In particular, Russia is interested in the participation of Russian companies in developing vessels for various purposes, underwater robotic complexes, and research vessels. He also mentioned aviation, saying, “We see cooperation in aircraft construction as promising. In particular, the new Russian turboprop aircraft Il-114-300 completed flight tests this year. It can be used in a wide range of climate zones, including regions with tropical, subtropical, and hot climates.” Russia has already sold six of these aircraft to India. 

Russian participation in the construction of Indonesia’s new capital could be one of the avenues of industrial cooperation between Russia and Jakarta, with Alikhanov suggesting that “we see potential for Russian businesses to participate in infrastructure projects, including as part of the creation of Indonesia’s new capital, Nusantara.” The scale of the planned work presumes substantial investment in transport, energy, and utility infrastructure over the coming decades. Our companies will also gladly offer their technology and experience for construction and modernization of such facilities, including railway infrastructure.”

Indonesia Map

Nusantara will be located on the island of Borneo, about 1,400 km away from the current Indonesian capital Jakarta. Construction of the city began in 2022 and is expected to be completed by 2045.

Mutual trade between Russia and Indonesia amounted to US$4.8 billion in 2025, having grown by 11.6% over the previous year. Indonesia is a full member of BRICS and has a Free Trade Agreement with Russia via the Eurasian Economic Union.

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