Indonesian Political, Business & Finance News

Momentum to Strengthen RI-Swiss Strategic Partnership for Technological Independence

| | Source: KOMPAS.ID Translated from Indonesian | Economy
Momentum to Strengthen RI-Swiss Strategic Partnership for Technological Independence
Image: KOMPAS.ID

This year marks the 75th anniversary of diplomatic relations between the Republic of Indonesia and Switzerland, a milestone both nations are using as momentum to optimise various potentials. The target is to strengthen innovation-based economic cooperation that is sustainable.

Indonesian Ambassador to Switzerland Ngurah Swajaya stated in an interview at the Indonesian Embassy in Bern that current geopolitical conflicts present both challenges and opportunities for the two countries. As a challenge, both nations can exchange ideas to overcome it. On the other hand, Indonesia and Switzerland have enormous opportunities, especially in the economic and education sectors.

The relationship, which began in 1951, has produced several important agreements. Within the framework of the European Free Trade Association, Switzerland became Indonesia’s first partner in Europe under a Comprehensive Economic Partnership Agreement and a bilateral investment agreement to boost trade and investment between the two countries. This cooperation was further strengthened by the signing of a young professional exchange programme, allowing Indonesian and Swiss youth to work in each other’s country for 18 months to gain international career experience.

Now, in commemoration of 75 years of relations, the two countries agreed last week on a mineral and metal resource processing agreement. “This is a mutually beneficial agreement and has the potential to provide added economic value for Indonesia,” said Ngurah. He noted that this is the first time Switzerland has undertaken such an agreement with a developing country like Indonesia. For Indonesia, in the context of downstreaming, this provides an alternative so that the country does not depend on technology sources from just one nation. Moreover, the latest Swiss innovation-based technology offers the capacity to reduce carbon emissions and add value to products.

In this downstreaming cooperation, Indonesia possesses natural resources, while Switzerland has a global commodity trading network, investment, and human resources for industrial downstreaming. Through this collaboration, industrial downstreaming is expected to become an area for technology transfer and human resource development in Indonesia.

From a political aspect, both countries face no barriers in communicating with major world powers. Switzerland adheres to a foreign policy principle of neutrality with enormous technological resources, while Indonesia adheres to a free and active principle. However, there is a note that despite good bilateral relations, the existing potential has not been optimised. Indonesia has not placed Switzerland in its global view, and vice versa. “With the geopolitical conflicts, a strategy has emerged in Europe, particularly in Switzerland, to diversify so as not to depend on their traditional partners,” he said.

In this diversification strategy, one of the targeted areas is Asia. Indonesia is now being eyed as a strategic partner for Switzerland because it is located in a region that is relatively stable in terms of security and politics compared to other regions in the world. Moreover, Indonesia and its neighbouring countries in ASEAN have a young workforce ready to be trained and have their competencies enhanced. “Therefore, at the annual Industrial Day event in Switzerland, which was attended by around 2,000 industry owners, Indonesia was honoured as the only country invited,” said Swajaya.

Meanwhile, Switzerland is a country that excels in technological innovation globally. The country is also a very high source of investment for several nations. Switzerland possesses superior innovation technology, is able to invest, and is willing to increase industrial capacity by expanding abroad. “Therefore, we need to strengthen relations with Switzerland as a mutually complementary strategic partner,” he said. With Switzerland’s small population, Swiss investment in Indonesia can be ensured to simultaneously encourage technical cooperation in the context of technology transfer.

Swiss President Guy Parmelin, after speaking at the Industrial Day 2026 event in Basel, stated that this memorandum of understanding strengthens the partnership between the two countries. “I believe Switzerland and Indonesia are very well suited to each other,” he said. “We have highly advanced technology and a workforce that has not yet been absorbed. Meanwhile, Indonesia is ready to develop strategic sectors. With Swiss expertise and technology and Indonesia’s highly trained workforce, we can achieve a mutually beneficial perspective.”

The combination of Indonesia, rich in critical mineral resources, and Switzerland, with its advanced technology, opens up opportunities for the development of the mineral and metal processing industry. This cooperation is believed to provide added value and strengthen economic capacity, especially for Indonesia. At the same time, technology transfer opens opportunities to strengthen vocational education for young Indonesians. On the other hand, Switzerland noted issues related to bureaucracy. “If we can simplify, by having direct contact and forming a Joint Economic Committee, with this agreement we can strengthen cooperation in the future,” said Parmelin. “This agreement also sends a very important signal that we want to deepen our cooperation in strategic sectors, always with a mutually beneficial perspective for both countries.”

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