Indonesia & Russia Deepen Industrial Partnership Through Fresh MoUs and Business Deals 

According to the Indonesian Minister of Industry, it represents a “more strategic and results-oriented phase” of bilateral relations. 

Indonesia and Russia are pressing ahead with a practical shift from friendly diplomacy into tangible industrial partnership actions, including the recent signing of a series of new memoranda of understanding (MoUs) and developing commercial agreements involving joint production and investment. 

This desire for more integrated economic relations was evident during the initial part of December when Indonesian businessmen and delegations gathered for a series of meetings and business matching sessions held in Moscow aimed at converting the goodwill into practical projects. According to the Indonesian Minister of Industry, it represents a “more strategic and results-oriented phase” of bilateral relations. 

Trade and investment statistics also set the context for the current emphasis. The figures for bilateral trade have steadily grown: as of October 2025, the cumulative total of two-way trade between the two nations was over US$4.0 billion, an increase from last year’s figures, and the cumulative total of direct investments by Russia to Indonesia has grown year by year to around US$147.2 million as of September 2025. 

However, what is new is the scope of the industry deals being sought. While the package of deals encompasses the usual areas of shipbuilding, scientific research collaborations, heavy industry, and energy, it also includes exploratory talks on nuclear energy technology in order to help meet Indonesia’s future power requirements. The country is also finalizing two others significant MoUs, both of which are on the critical topic of shipbuilding and on the scientific research of chrysotile asbestos, a topic that reveals the tough and industrial nature of the relationship. 

Having top-level political backing has contributed to moving the negotiations forward quickly. Meetings between Indonesian President Prabowo Subianto and Russian President Vladimir Putin later in the year covered more than just ceremonial politics, with defence, energy, and trade facilitation covered, indicating that a balance between strategic and commercial goals has been reached, rather than purely focusing on commercial objectives. Differing goals in supply chains and technology for industry in Indonesia dovetail with Russia’s own desire to increase engagement with the “Global South.” 

In terms of business, there is no doubt that the strategy is pragmatic, given that Indonesia has been promoting priority projects for joint production, and there are opportunities for Russian companies in areas where they already have edge technology – heavy machinery, shipbuilding, and some areas of energy technology, for example. The business matching sessions organized at Moscow were designed around integrating Indonesian projects and Russian industry partners and investors, and this was specifically aimed at transitioning from MoUs to pilots and investments. 

There face commercial risks and diplomatic sensitivities. The respective sanctions imposed on certain sectors within the Russian economy by the West create obstacles for the transfer of certain kinds of advanced technology and finance. The Indonesian Government seems to take a neutral approach towards Russian collaboration where and when there will be benefits for Indonesian development. Comments in diplomatic circles have noted that strong conditions will have to be created for Jakarta if any positive results for heavy industries will emerge. 

In the Indonesian industry, there is no doubt of the potential benefits of fast-track industrialization, new production facilities, and new technologies, particularly in shipping and energy, which could underpin export growth. Indonesian markets offer Russian companies a sizeable, growing market, together with a foundation in Southeast Asia for a broadening economic relationship, potentially incorporating mutual benefits in a final form of a Jakarta trade facilitation arrangement with the Eurasian Economic Union. The coming year will tell whether the momentum on display in Moscow delivers measurable industrial outcomes back home in Indonesia.