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, Trkiye, 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. Its potential cooperation with SOCAR could therefore extend beyond crude oil supplies to include refining, petroleum products and other parts of the energy value chain.
Energy cooperation has been on the bilateral agenda for several years. In April 2021, the two countries signed a memorandum of understanding between their respective energy ministries. The agreement provided a basis for cooperation in the sector, while subsequent discussions have focused on how to translate this framework into commercial opportunities.
During a meeting with Indonesian Ambassador Berlian Helmy in March 2026, Azerbaijani Energy Minister Parviz Shahbazov discussed the continuation of Azerbaijani crude oil supplies to Indonesia, possible participation in joint oil and gas exploration and production projects, and closer cooperation between SOCAR and Pertamina in petroleum products and oil and gas processing. The discussions also covered renewable energy. Both countries have potential in wind and solar power, while waste-to-energy technologies and biomass were identified as additional areas for cooperation. The Azerbaijani side stressed the importance of involving private companies alongside government institutions, an approach that could help move cooperation from diplomatic discussions towards investment and business activity.
Indonesia’s economic policy places considerable emphasis on adding value to its natural resources through domestic processing and industrial development. This approach, often referred to as downstreaming, is intended to strengthen local manufacturing, attract investment and increase the value generated from the country’s mineral and other resources. For Azerbaijan, which is seeking to develop non-oil industries and attract foreign capital into new sectors, this experience may be of interest.
The mining industry is another area where the two countries are beginning to explore concrete possibilities. On October 29, an Indonesian delegation led by Pasaribu met with representatives of AzerGold CJSC. The meeting focused on investment opportunities and the prospects for joint projects in the mining sector. AzerGold Chairman of the Executive Board Zakir Ibrahimov briefed the delegation on the company’s ten years of operations, its strategic projects and its future development plans. One of the main subjects was the possibility of AzerGold participating as an investor in prospective mining projects in Indonesia and establishing partnerships with local companies. The Indonesian side, in turn, expressed interest in Azerbaijan’s mining industry, particularly the Dashkasan iron ore project, one of AzerGold’s strategic initiatives. The discussions covered the project’s implementation prospects and possible areas of cooperation. The parties agreed to continue technical consultations and identify the next steps for projects of mutual interest.
For Azerbaijan, the Dashkasan project is important in the context of developing its mining and metallurgical industries and making greater use of domestic mineral resources. Cooperation with Indonesian companies could provide access to investment, technical expertise and potential industrial partnerships. At the same time, opportunities for AzerGold in Indonesia would allow the Azerbaijani company to consider expanding its activities beyond the domestic market.
Geography, in this case, does not have to be a barrier to economic cooperation. Azerbaijan’s position along the Middle Corridor and its access to regional transport networks can offer opportunities for companies seeking connections between Asian and European markets. Indonesia, meanwhile, provides access to a large Southeast Asian consumer market and a manufacturing environment with established industrial capabilities.
The challenge now is to turn the growing number of meetings and areas of mutual interest into projects with clear commercial terms and implementation schedules. With bilateral trade still relatively modest and concentrated in a limited number of products, both countries have reason to look beyond existing trade flows. The current discussions suggest that Baku and Jakarta are interested in doing precisely that.