Jakarta, INTI - Indonesia's Ministry of Industry is pursuing greater investment and accelerated technology transfer through expanded industrial cooperation with Azerbaijan. The initiative is being advanced through negotiations on a Memorandum of Understanding (MoU), following Indonesia's participation as a Partner Country at INNOPROM 2026.
The agreement to accelerate MoU discussions was reached during a bilateral meeting between Indonesia's Ambassador Extraordinary and Plenipotentiary to the Russian Federation and the Republic of Belarus, Jose Antonio Morato Tavares, and Mammad Abbasbeyli, Advisor to the Minister of Economy of Azerbaijan. The partnership is expected to attract new investment, strengthen Indonesia's industrial sector, and facilitate technology transfer to enhance the competitiveness of the country's manufacturing industry.
Minister of Industry Agus Gumiwang Kartasasmita said Azerbaijan serves as a strategic trade gateway between Asia and Europe, making it an important partner for Indonesia's industrial development.
"INNOPROM 2026 provides an important opportunity for us to strengthen partnerships with strategic countries, including Azerbaijan. We hope this MoU will open new investment opportunities, accelerate technology transfer, and create mutually beneficial industrial cooperation for both countries," Agus said in Jakarta on Sunday, July 19, 2026.
MoU to Boost Investment and Technology Transfer
As a follow-up, the Ministry of Industry has submitted a draft MoU to the Azerbaijani government through diplomatic channels. Indonesia is awaiting Azerbaijan's response so that the agreement can be finalized and implemented promptly.
The proposed MoU covers several areas of cooperation, including the exchange of information on industrial standards and regulations, supply chain development, technology transfer, industrial estate development, business forums, and human resource capacity building.
Indonesian Ambassador Jose Antonio Morato Tavares emphasized that the MoU will serve as a foundation for expanding industrial, trade, and investment cooperation between the two countries.
"The strong communication established between our two countries provides an important foundation for realizing the cooperation opportunities discussed during the bilateral meeting," Jose said.
Azerbaijan Opens Access to Eurasian Markets
Indonesia considers Azerbaijan a strategic partner due to its growing role as a logistics hub connecting Asia and Europe through the Trans-Caspian International Transport Route (Middle Corridor) and the International North–South Transport Corridor (INSTC).
This strategic position offers opportunities to strengthen industrial supply chains while expanding market access for Indonesian manufactured products across the Caucasus, Central Asia, Eastern Europe, and the Commonwealth of Independent States (CIS).
Trade relations between Indonesia and Azerbaijan have also continued to improve. In 2025, bilateral trade reached US$155.2 million, with Indonesia recording a non-oil trade surplus through exports of palm oil, soap, plastics, tobacco, and processed food, while Azerbaijan supplied crude oil to Indonesia.
The government expects the MoU to become a milestone in strengthening industrial cooperation, attracting broader investment, and accelerating technology transfer for Indonesia's manufacturing sector. Indonesia's participation in INNOPROM 2026 is also expected to foster new strategic partnerships across the Eurasian region.
Conclusion
The planned MoU between Indonesia and Azerbaijan marks an important step toward strengthening industrial cooperation, attracting new investment, and accelerating technology transfer. By expanding collaboration in manufacturing, supply chains, and industrial development, both countries aim to enhance competitiveness, create long-term economic opportunities, and deepen strategic partnerships across the Eurasian region.
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