Indonesia and Azerbaijan Accelerate Finalisation of Industrial Cooperation MoU
The Ministry of Industry is accelerating the finalisation of a Memorandum of Understanding (MoU) on industrial cooperation with the Government of Azerbaijan as a follow-up to Indonesia’s participation as a Partner Country at INNOPROM 2026. The agreement to speed up the MoU discussions was reached during a bilateral meeting between the Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to the Russian Federation and the Republic of Belarus, Jose Antonio Morato Tavares, and the Advisor to the Minister of Economy of the Republic of Azerbaijan, Mammad Abbasbeyli. The cooperation is directed at expanding Indonesian manufacturing exports, attracting investment, strengthening industrial supply chains, and opening opportunities for technology transfer through closer partnerships with Azerbaijan, a strategic country in the Eurasian region. Minister of Industry Agus Gumiwang Kartasasmita stated that Azerbaijan holds a strategic position as a trade link between Asia and Europe, making it an important partner for Indonesia in broadening industrial cooperation. “INNOPROM 2026 is an important momentum for us to strengthen partnerships with strategic countries, including Azerbaijan. We hope the discussion of this MoU can open investment opportunities, spur technology transfer, and create mutually beneficial cooperation for both countries,” Agus said. As a follow-up, the Ministry of Industry has submitted a draft MoU to the Government of Azerbaijan through diplomatic channels. The document is expected to serve as the basis for establishing more structured and sustainable industrial cooperation. Indonesia has proposed several scopes of cooperation in the MoU, including the exchange of information on industrial standards and regulations, supply chain development, technology transfer, industrial estate development, business forum organisation, and human resource capacity building. Ambassador Jose Antonio Morato Tavares expressed hope that the MoU discussions can be concluded soon so that the implementation of industrial, trade, and investment cooperation between the two countries can commence promptly. “The good communication that has been established between the two countries is an important asset for realising the various cooperation opportunities discussed in the bilateral meeting,” Jose said. Indonesia views Azerbaijan as a strategic partner due to its development as a logistics hub connecting Asia and Europe through the Trans-Caspian International Transport Route (Middle Corridor) and the International North-South Transport Corridor (INSTC). These routes are considered capable of expanding access for Indonesian manufactured products to the Caucasus, Central Asia, Eastern Europe, and the Commonwealth of Independent States (CIS) countries. Trade relations between the two countries continue to show a positive trend. In 2025, the trade value between Indonesia and Azerbaijan reached 155.2 million US dollars. Indonesia recorded a non-oil and gas trade surplus through exports of palm oil, soap, plastics, tobacco, and processed food, while Azerbaijan supplied crude oil to Indonesia. The finalisation of the MoU is expected to become a milestone in strengthening industrial cooperation between Indonesia and Azerbaijan while expanding access for national manufacturing markets in the Eurasian region. Indonesia’s participation as a Partner Country at INNOPROM 2026 also has the potential to generate more industrial and technology partnerships with various partner countries.