News

Minister Darmin encourages Expansion Access of Agricultural-Fisheries Product Markets to Russia

28 October 2018
Coordinating Minister for the Economy Darmin Nasution visits Moscow to further strengthen Indonesia's bilateral relations with Russia, especially collaboration in the economics, trade and engineering sectors.
A number of strategic programs were discussed with his partner, Denis Manturov, Russia's Minister of Industry and Trade at the 12th Joint Commission Meeting (SKB) of the Indonesian-Russian Trade, Economics and Engineering Cooperation in Moscow on Friday, Oct 26.
"Minister Denis Manturov and I have agreed to continue working hard together to formulate strategic steps to increase trade value in the future and of course investment so that the economic relations between the two countries would increase," Darmin Nasution said in a written statement on Sunday, Oct 28.
Russia is one of Indonesia's key partners. The areas of cooperation discussed in the SKB included trade, industry, investment, energy including nuclear energy for peaceful purposes, transportation and infrastructure, information technology and telecommunications, banking and finance, to space. Also cultural and tourism cooperation, science and education, health, maritime affairs, fisheries and agriculture, standardization, and cooperation between cities / provinces and chambers of commerce of the two countries.
In the meeting, Darmin emphasized the importance of expanding market access for Indonesian agricultural and fishery products and commodities to Russia, increasing Russian investment in Indonesia, especially in the fields of infrastructure and energy. Darmin also highlighted the need to accelerate the Indonesian free trade negotiations with the Eurasian Economic Union (EAEU).
The SKB is one of the mechanisms to increase Indonesia's bilateral collaboration with Russia. It was preceded by a working group meeting in the fields of energy, banking and finance, expert team meeting, bilateral meeting of Coordinating Minister Nasin Nasution with Minister Denis Manturov, and a plenary session as its summit.
To further intensify cooperation between the two countries, the 12th SKB agreed to establish three more working groups, including banking and finance, maritime affairs and fisheries, and agriculture. The deal between Indonesia and Russia in the 12th SKB were stated in the Agreed Minutes of the Twelfth Session of the Intergovernmental Indonesian-Russian Joint Commission on Trade, Economic and Technical Cooperation signed by Minister Darmin Nasution and Minister Denis Manturov.
Amid the unstable global economic condition, the trade value of Indonesia and Russia still shows an increase. According to Indonesian trade statistics, the total value of bilateral trade between Indonesia and Russia in 2017 reached $2.52 billion, an increase of 19.43% from 2016 which was recorded at $2.11 billion.
Meanwhile, Russian trade data according to Federal Custom reached $3.27 billion or up by 25%.
In the investment sector, based on BKPM Indonesia's records, the realization of Russian investment in Indonesia in the last five years is still fluctuating. In 2017, Russia was ranked 38th on the list of partner countries investing in Indonesia with a value of $7.4 million in 62 projects or an increase of 34.6% compared to 2016 which reached $5.5 million in 31 projects.
In the tourism sector, Russian tourists to Indonesia in 2017 reached 110,500 people, an increase of 37.28% from 2016. Russian tourists to Indonesia are expected to increase with plans for direct flights from Moscow to Denpasar starting on 28 October 2018 by Russian airlines "Rossiya Airlines" which is a subsidiary of Aeroflot.
Meanwhile, to further enhance people-to-people contact, promotion of Indonesia, tourism and trade development. Since 2016, the Indonesian Festival is held annually in Moscow.
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