Indonesia Explores Investment in Downstream Processing and Logistics with Azerbaijan

Jakarta (ANTARA) – The Indonesian Government, through the Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM), is exploring investment opportunities in mineral downstreaming, textiles, energy, petrochemicals and logistics with a number of Azerbaijani companies and investment institutions.

The discussions took place during a series of meetings led by Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM Todotua Pasaribu in Baku, Azerbaijan, from 26 to 28 October 2026.

“Indonesia wants to build investment partnerships that not only expand business opportunities but also strengthen national industrial capacity. We are open to working with international partners who can support industrial development from upstream to downstream, increase domestic added value and create sustainable economic opportunities,” Deputy Minister Todotua said in an official statement received in Jakarta on Thursday.

The meetings involved several companies and institutions: AzerGold, the Azerbaijan Textile Association (ATA), AZCON Holding, EGA Holding, the State Oil Company of the Republic of Azerbaijan (SOCAR), the State Oil Fund of the Republic of Azerbaijan (SOFAZ) and Azerbaijan Investment Holding (AIH).

At a meeting with AzerGold, discussions on mineral downstreaming focused on potential partnerships to develop mineral processing, particularly iron and steel, as well as other strategic mineral commodities.

The proposed cooperation is intended to increase the added value of mineral resources and strengthen industrial supply chains through investment opportunities and partnerships with Indonesian businesses.

Meanwhile, the meeting with the Azerbaijan Textile Association explored ways to strengthen the textile industry’s supply chain, including cooperation on supplies of cotton and yarn, and investment in spinning and textile processing.

In infrastructure and logistics, talks with AZCON Holding covered investment opportunities in port development, multimodal transport, shipyards and integrated logistics systems.

Indonesia also presented opportunities to develop port infrastructure and connectivity with industrial zones to improve distribution efficiency and the competitiveness of national industry.

In the energy and petrochemicals sector, the meeting with SOCAR addressed potential investment cooperation in petrochemicals, strengthening supplies of energy feedstocks and products, and developing energy storage and distribution facilities in Indonesia.

At a separate meeting with EGA Holding, the two sides discussed opportunities for trade, investment and business partnerships.

The meeting also provided an opportunity to exchange information on potential cooperation between businesses and the role of government in facilitating follow-up to opportunities that both countries could pursue.

During the visit, Deputy Minister Todotua and Danantara’s Managing Director for Investment also met with Azerbaijan’s two government-owned sovereign wealth funds, SOFAZ and AIH, to discuss investment cooperation between Indonesia and Azerbaijan.

The meeting with SOFAZ covered opportunities to strengthen investment cooperation through co-investment, infrastructure development, energy, petrochemicals and the optimisation of strategic assets.

The two sides explored investment opportunities in energy storage and processing facilities, the petrochemical industry and the strengthening of textile supply chains.

Meanwhile, talks with AIH focused on reinforcing the Indonesia-Azerbaijan strategic partnership through joint investment by AIH and Danantara.

Cooperation is being explored across priority sectors including textiles, minerals and steel, aluminium, energy and petrochemicals, logistics, and agriculture and plantations.

AIH said it was open to evaluating Indonesian investment proposals based on industrial synergies and commercial viability. Planned follow-up includes mapping priority projects and exploring partnerships with relevant companies.

“The various opportunities discussed will be followed up through closer communication, information exchange and the identification of potential projects and business partners. The Ministry of Investment and Downstreaming/BKPM is ready to facilitate the exploratory process so that these opportunities for cooperation can develop into concrete and mutually beneficial investments,” Deputy Minister Todotua said.