RRI.CO.ID, Jakarta - Indonesia and Azerbaijan have agreed to accelerate negotiations on a Memorandum of Understanding (MoU) on industrial cooperation, following Indonesia's participation as a Partner Country at INNOPROM 2026. The agreement was reached during a bilateral meeting between Jose Antonio Morato Tavares, Indonesia's Ambassador Extraordinary and Plenipotentiary to Russia and Belarus, and Mammad Abbasbeyli, Adviser to Azerbaijan's Minister of Economy, as part of efforts to expand manufacturing exports, attract investment, and strengthen industrial partnerships across Eurasia.

Indonesia's Minister of Industry, Agus Gumiwang Kartasasmita, said Azerbaijan occupies a strategic position as a trade gateway between Asia and Europe. "INNOPROM 2026 provides an important opportunity for us to strengthen partnerships with strategic countries, including Azerbaijan. We hope this MoU will create new investment opportunities, accelerate technology transfer, and foster mutually beneficial industrial cooperation between our two countries," Agus said in a statement issued in Jakarta on July 17.

As a follow-up, the Ministry of Industry has formally submitted the draft MoU to the Azerbaijani government through diplomatic channels. The initiative is expected to establish a more structured and sustainable framework for bilateral industrial cooperation.

Ambassador Jose Antonio Morato Tavares said Indonesia hopes the MoU negotiations can move forward quickly to serve as a foundation for expanding industrial, trade, and investment cooperation between the two countries. He noted that the strong diplomatic communication established between Indonesia and Azerbaijan provides a solid basis for realizing the various cooperation opportunities discussed during the bilateral meeting.

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.

Indonesia expects Azerbaijan to respond promptly to the draft agreement so that both countries can finalize the MoU and begin implementing joint industrial initiatives.

Indonesia considers Azerbaijan a strategic partner because of 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). These transport corridors could provide Indonesian manufactured products with broader access to markets in the Caucasus, Central Asia, Eastern Europe, and the Commonwealth of Independent States (CIS).

Trade relations between Indonesia and Azerbaijan continue to demonstrate complementary strengths. Indonesia maintains a non-oil and gas trade surplus by exporting palm oil, soap, plastics, tobacco, and processed food products, while Azerbaijan supplies crude oil to Indonesia. Bilateral trade reached US$155.2 million in 2025, further strengthening diplomatic ties that have existed since September 24, 1992.

The completion of the MoU is expected to mark a new milestone in industrial cooperation between Indonesia and the Eurasian region, while creating new opportunities for investment, expanding market access for Indonesian manufactured goods, strengthening industrial supply chains, and accelerating technology transfer to enhance the competitiveness of Indonesia's manufacturing sector.

With nearly 900 exhibitors from more than 50 countries, INNOPROM 2026 has become a strategic platform for Indonesia to expand its global industrial partnerships. Indonesia's participation as a Partner Country is expected not only to promote the country's manufacturing sector but also to generate new technology partnerships with international partners, including Azerbaijan.