Indonesia and Russia Forge New Alliances, Announce €2 Billion Investment Platform

In a move signaling strengthened ties, Indonesia and Russia have solidified multiple cooperative agreements. These deals, including a substantial investment platform, highlight a growing partnership amidst shifting global dynamics and will impact future economic growth.

Cooperation Agreements Unveiled

During a gathering in St. Petersburg, Russia, Indonesia and Russia revealed four distinct cooperation plans. The exchange of documents occurred at the Konstantinovsky Palace on Thursday. The meeting was attended by Indonesian President Prabowo Subianto and Russian President Vladimir Putin.

Three of the four agreements emphasize collaboration in education, transportation, and the digital and mass media sectors. A €2 billion investment platform is the centerpiece of the fourth agreement, facilitated by the sovereign wealth funds of both nations: Danantara Indonesia and the Russian Direct Investment Fund.

“I would like to underline that Indonesia is an important partner of Russia in the Asia-Pacific region,”

—Vladimir Putin, President of Russia

Putin highlighted a significant 40 percent surge in trade volume between the two countries during the initial four months of this year compared to the same period in 2024, which saw $4.3 billion in trade. Indonesia’s strategic importance in the Asia-Pacific region is evident, underscored by the trade figures, and reflects evolving global partnerships.

Further Discussions

Prabowo Subianto described the discussions with Putin as “intense, warm, and productive.” Accompanying Prabowo were several Indonesian ministers, including Sugiono, Sjafrie Sjamsoeddin, Airlangga Hartarto, and Meutya Hafid. Also present were Rosan Perkasa Roeslani, CEO of Danantara, and Simon Aloysius Mantiri, CEO of the state-owned energy company Pertamina.

Indonesia’s strong economic growth is projected to continue, with the country’s GDP expected to expand by 5.1% in 2025 (IMF 2025).