Indonesian Political, Business & Finance News

Indonesia 'Splits' Central Asia, Eyes New Trade Route to Kazakhstan

| Source: CNBC Translated from Indonesian | Trade
Indonesia 'Splits' Central Asia, Eyes New Trade Route to Kazakhstan
Image: CNBC

Indonesia is seeking to expand its export market access to Central Asia by exploring a new trade route through Kazakhstan. The effort is expected to broaden the reach of Indonesian products into the Eurasian market and enhance bilateral trade.

This initiative was a key focus of a working visit by Indonesian Deputy Foreign Minister M. Anis Matta to Kazakhstan from 27 June to 1 July 2026. During meetings with Kazakh Foreign Minister Yermek Kosherbayev and Deputy Foreign Minister Alibek Bakayev, both nations discussed strengthening economic ties, including the development of an Indonesia-Kazakhstan trade corridor.

‘Connectivity is a crucial factor in driving the flow of goods, investment, and broader economic interaction,’ stated the Indonesian Ministry of Foreign Affairs.

Anis Matta emphasised that economic relations between Indonesia and Kazakhstan must be built on a complementary approach. He noted that cooperation should not only focus on increasing trade volume but also on sectors that provide added value for both parties.

The push for closer economic ties comes amid significant trade potential. Government data shows that Indonesia-Kazakhstan trade reached US$244.7 million in 2025. However, officials believe this figure remains far below its potential. Indonesian Ambassador to Kazakhstan M. Fadjroel Rachman previously expressed optimism that bilateral trade could reach US$2 billion, supported by strengthened cooperation in logistics, the opening of direct flights, visa facilitation, investment protection, and collaboration in energy and minerals.

In the long term, the implementation of the Indonesia-Eurasian Economic Union Free Trade Agreement (Indonesia-EAEU FTA) is expected to potentially boost regional trade value to US$10 billion. The Ministry of Foreign Affairs stated that a significant increase in trade is anticipated once all EAEU member states complete the ratification process for the agreement signed in December 2025.

Beyond trade, Indonesia and Kazakhstan are exploring enhanced people-to-people connectivity through visa facilitation, the establishment of direct flights, and collaboration in the creative industries. These measures are expected to accelerate mobility for business actors, tourists, and investors between the two countries.

During the visit, Anis Matta also met with the Grand Mufti of Kazakhstan, Nauryzbai Kazhy Taganuly, to discuss halal certification cooperation as an instrument to strengthen economic relations. He also held meetings with the Secretary General of the Conference on Interaction and Confidence Building Measures in Asia (CICA), Kairat Sarybay, and the Director General of the Islamic Organization for Food Security (IOFS), Berik Aryn, to discuss global food security and regional cooperation.

As the largest economy in Central Asia, Kazakhstan is viewed as a strategic gateway to the Eurasian market. Through enhanced trade connectivity and the implementation of the Indonesia-EAEU FTA, the Indonesian government hopes to diversify national exports and reduce dependence on traditional markets.

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