Indonesia and Uzbekistan Forge New Foundation for Trade, Investment, and SME Cooperation
Jakarta – Indonesia and Uzbekistan have agreed to strengthen the foundation of bilateral economic cooperation amid rising global economic uncertainty and various international trade challenges. The commitment emerged during a follow-up meeting on the establishment of a Joint Working Group (JWG) on Trade and Investment Cooperation held in Tashkent, Uzbekistan, on Tuesday (16/6).
Indonesia’s Deputy Minister of Trade, Dyah Roro Esti Widya Putri, stressed that collaboration with strategic partners is one of the keys to building stronger and more sustainable economic resilience.
“Indonesia views Uzbekistan as a key strategic partner and an important economic hub in the Central Asian region. Deepening trade and investment relations between the two countries will help create a more balanced trade architecture and more resilient value chains,” said Roro.
Optimism regarding the prospects of bilateral economic relations is supported by a positive trade trend. The value of trade between Indonesia and Uzbekistan in 2025 reached USD 181.4 million, an increase of nearly 23 percent compared to the previous year. Over the past five years, bilateral trade turnover has grown by approximately 49 percent.
During the meeting, both sides also discussed the development of the Indonesia–Uzbekistan Free Trade Agreement (IU-FTA). According to Roro, the official launch of IU-FTA negotiations on 2 March 2026 marked an important milestone reflecting the strong commitment of both countries to expanding economic cooperation.
The agreement is considered strategically valuable as it will connect the largest economy in Southeast Asia with one of the fastest-growing economies in Central Asia. Furthermore, Uzbekistan’s position along the strategic Eurasian corridor opens greater opportunities for Indonesian products to reach Central Asian markets and surrounding regions. Conversely, Indonesia can serve as a gateway for Uzbekistan to access the dynamic and growing ASEAN market.
As a next step, Indonesia hopes that technical discussions on the Terms of Reference for the negotiations can commence soon before the first official round of the IU-FTA is held. The Indonesian government has also expressed its readiness to submit an initial draft of the Terms of Reference as a basis for discussion.
In the investment sector, Indonesia welcomed the growing interest from Uzbek investors, which has shown a significant upward trend in recent years. The government encourages both countries to strengthen collaboration between investment authorities and business actors to unlock new opportunities in various strategic sectors. Key sectors of focus include agriculture, fertilisers, manufacturing, renewable energy, tourism, the halal industry, and the digital economy.
Roro also emphasised the importance of empowering small and medium enterprises (SMEs) as one of the pillars of bilateral cooperation. She stated that support for SMEs must be reinforced to enhance their capacity and competitiveness in the global market.
“Business-to-business collaboration is a growth engine that can translate government commitments into concrete and economically valuable business partnerships,” she stressed.
Meanwhile, Uzbekistan’s Deputy Minister of Investment, Industry, and Trade, Ibrohim Ergashev, proposed that the inaugural JWG meeting at the senior official level be held soon to comprehensively discuss various cooperation agendas, particularly in trade in goods, services, and investment. He also expressed support for strengthening collaboration in SME empowerment, including capacity building and market access for women entrepreneurs in both countries.
Trade data shows that Uzbekistan is currently Indonesia’s 103rd non-oil and gas export destination and 58th non-oil and gas import source. In 2025, total trade between the two countries reached USD 181.4 million, with Indonesian exports valued at USD 72.6 million and imports at USD 108.8 million. Indonesia’s main export products to Uzbekistan include margarine, animal and vegetable oils and fats, coconut oil, soap, organic surface-active agents, and uncoated paper and cardboard. Meanwhile, Indonesia imports potassium-based fertilisers, pulp fibre, unwrought aluminium, electrical machinery and equipment, and various insulated cables from Uzbekistan.