Azerbaijan and Indonesia are seeking to give their economic relationship a new direction, with investment, mining and industrial cooperation emerging as the main areas of interest. A series of meetings held in Baku in late October has brought the two countries closer to discussing practical projects, reflecting a shared interest in expanding commercial ties beyond the traditional exchange of commodities. The geographical distance between the two countries is considerable, but their economic interests offer several points of connection.
Azerbaijan is an important energy producer and a strategic transit country between Europe and Asia, while Indonesia is one of Southeast Asia’s largest economies, with a substantial industrial base, a growing domestic market and extensive natural resources. Their economic structures are different, but this creates opportunities for cooperation in areas where their respective experience and resources can complement one another. Trade relations between Azerbaijan and Indonesia already exist, and Indonesia appears among the destinations of Azerbaijani exports in official statistics.
In January-August 2025, Indonesia accounted for around 0.4 percent of Azerbaijan's total exports. This figure is still modest, especially when compared with Azerbaijan's major trading partners such as Italy, Türkiye, Russia, and China. However, that is precisely what makes the relationship interesting.
The current volume of trade remains relatively small, but the room for expansion is substantial. The latest round of discussions began with a meeting between Azerbaijani Deputy Minister of Economy Anar Akhundov and Indonesian Vice Minister of Investment and Downstream Industry Todotua Pasaribu, who also serves as Vice Chairman of Indonesia’s Investment Coordinating Board and Vice Commissioner of state-owned energy company Pertamina. Energy, petrochemicals, industry, trade and investment were among the subjects discussed.
Particular attention was given to potential joint projects involving Azerbaijan’s SOCAR and Indonesia’s Pertamina. The sides also examined opportunities for Indonesian businesses to participate in the reconstruction of Garabagh, as well as possible cooperation in renewable energy, logistics, public-private partnerships and education. Azerbaijan presented investment opportunities available in its industrial zones and the Alat Free Economic Zone.
Projects in Garabagh and East Zangezur were also discussed, giving the Indonesian delegation an opportunity to consider areas beyond the energy sector in which its companies could become involved. The participation of Pertamina in these discussions is especially relevant. Established in 1957, the company is responsible for a broad range of activities, including oil and gas exploration and production, refining, petrochemicals and the distribution of energy products.
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