Azerbaijan, Indonesia seek to unlock untapped trade potential

As a country located at the crossroads of Europe and Asia, Azerbaijan has long sought to build balanced and productive relations with both European and Asian states. In this broader foreign economic strategy, Indonesia is increasingly emerging as a promising economic partner.

Although Azerbaijan and Indonesia are separated by thousands of kilometres, their economic relations have considerable potential for growth. At first glance, the two countries may appear very different, separated by geography, scale, and historical experience. Yet a closer look shows that Azerbaijan and Indonesia have more in common than might be assumed, and their growing dialogue points to significant opportunities for deeper cooperation.

A recent meeting between Yusif Abdullayev, Executive Director of the Export and Investment Promotion Agency of Azerbaijan (AZPROMO), and Berlian Helmy, Indonesia’s Ambassador to Azerbaijan, highlighted this trend. The discussions focused on the possibility of organizing an Azerbaijan-Indonesia economic forum in the future. The sides also exchanged views on products with export potential and explored possible areas of cooperation. Among the sectors identified were construction, agriculture, tourism, pharmaceuticals, and the food and beverage industry.

This meeting reflected a broader recognition that the relationship between Azerbaijan and Indonesia contains considerable untapped potential. Both sides appear increasingly interested in turning goodwill into practical economic projects, trade links, and investment partnerships.

Indonesia, thanks to its openness to international cooperation, can become a strategic partner for Azerbaijan in the implementation of mutually beneficial initiatives in business, investment, trade, tourism, and other sectors. At the same time, Azerbaijan’s geographic position gives it a special role in this relationship. Situated between Asia and Europe, Azerbaijan offers Indonesia a potentially valuable hub for access to European markets. This advantage is especially important at a time when countries are looking to diversify their trade routes, partnerships, and export destinations.

Beyond geography, Azerbaijan also presents itself as a country undergoing dynamic development in social and cultural spheres, especially among young people. This creates a favorable atmosphere for cooperation not only in commerce, but also in broader people-to-people and institutional ties.

Ambassador Berliane Helmi previously highlighted one particularly important area of interest for Indonesia, fertilizers. He stated earlier this year that Indonesia views Azerbaijan as a reliable supplier of fertilizers, which are critically important for Indonesian agriculture.

In this context, Indonesia could become a promising market for Azerbaijani agricultural, food, chemical, and petrochemical products. It opens the door to a broader commercial relationship beyond energy. For Azerbaijan, expanding into a large and dynamic market like Indonesia would represent an important diversification opportunity.

The Indonesian diplomat also emphasized the importance of water sustainability and water security. He noted that Azerbaijan has broad experience in providing clean drinking water, including technologies related to the desalination of the Caspian Sea, and stressed the importance of developing cooperation in this sphere.

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.

In other words, Azerbaijan-Indonesia trade should not be judged only by its present scale, but by its future potential. When the existing base is limited, even moderate progress in the right sectors can produce visible results. The challenge is to identify the most practical areas for growth and to build mechanisms that allow businesses on both sides to move from discussion to implementation.

Energy is already one of the clearest pillars of the relationship. It would be unfair not to note that Indonesia is also an importer of Azerbaijani oil. In January-February of this year, Azerbaijan exported 38.6 thousand tons of crude oil and petroleum products obtained from bituminous minerals to Indonesia, with a total value of $17.9 million.

The energy dimension of the relationship gained further weight in March of this year, when Azerbaijan and Indonesia agreed to hold the first meeting of the Working Group on Energy. It underscores Azerbaijan’s role as a country that partners view as reliable and worth engaging with on long-term issues. The establishment of such a platform also creates an opportunity to move beyond individual shipments or contracts toward a more structured dialogue on cooperation.

Tourism is another sector where new opportunities are beginning to emerge. In April of this year, the Azerbaijan Tourism Bureau presented the country for the first time at Indonesia Travel Expo 2026 (ITE) in Jakarta. At the exhibition, Azerbaijan was showcased as a promising tourist destination for the Indonesian market. Business meetings were held with local travel agencies to develop cooperation and identify new opportunities for joint business initiatives.

Multilateral cooperation has also created new opportunities for strengthening economic ties between Azerbaijan and Indonesia. Azerbaijan joined the D-8 Organization for Economic Cooperation in 2025, and Indonesia is among its members. In 2026-2027, Indonesia holds the chairmanship of the organization. This creates an additional framework through which the two countries can strengthen their economic ties.

Within the D-8 framework, particular attention is given to expanding trade and investment, developing the halal economy, strengthening food security, advancing the green transition, deepening digital cooperation, and improving transport connectivity.

The future of Azerbaijan-Indonesia relations will likely depend less on grand declarations and more on consistent follow-through. Organizing an economic forum and launching sector-based business contacts effectively could turn a modest trade relationship into a more strategic one. The foundations already exist. If both sides act with continuity and practical focus, the partnership between Azerbaijan and Indonesia may become one of the more interesting examples of cross-regional cooperation linking the Caucasus and Southeast Asia.

H5N1 spreads across Australia as authorities race to protect vulnerable birds

Australia is preparing to vaccinate vulnerable native bird species kept in captivity as the highly pathogenic H5N1 bird flu continues to spread across the country, local media reported on Tuesday.

The country has recorded more than 230 confirmed cases of the virus, while authorities last week reported Australia’s first mass wildlife deaths associated with H5N1, according to ABC News.

Agriculture Minister Julie Collins said the vaccination programme would be rolled out across Australia’s states and territories in the coming days.

She said authorities could not prevent H5N1 from spreading among wild birds but could take steps to safeguard species considered most vulnerable to the disease.

Under the programme, officials will decide which species should receive the vaccine based on their susceptibility to the virus and the potential consequences for conservation efforts.

Environment Minister Murray Watt said vaccinating wild birds on a large scale would not be practical because the vaccine requires two doses. However, targeted vaccination of wild birds could be considered where it is logistically possible.

The Australian government has initially allocated A$2 million ($1.3 million) for vaccines.

Chief Veterinary Officer Beth Cookson said vaccination alone would not be sufficient to control the outbreak, emphasising that strong biosecurity measures would continue to play a key role in limiting the virus’s spread.

H5N1 cases have now been confirmed across most of Australia, with Tasmania, the Northern Territory and the Australian Capital Territory the only jurisdictions yet to report infections.

Despite the spread among wild birds, authorities have so far found no evidence of H5N1 in poultry or the wider agricultural sector.

Kazakhstan’s economy grew despite declining oil production

Kazakhstan’s GDP grew by 4.1% in January-July 2026, according to preliminary data from the country’s Bureau of National Statistics, cited by the government press service, AzerNEWS reports.

The main driver of growth was the non-resource sector, which expanded by 5.4% during the first seven months of the year. This suggests that Kazakhstan’s economy is becoming less dependent on oil and other raw materials.

The Ministry of National Economy said economic growth has remained stable despite lower oil production and continued volatility in global markets.

Oil output fell by 8.9% year-on-year in January-July, reaching 53.2 million tonnes.

For comparison, Kazakhstan produced around 99.6 million tonnes of oil in 2025. The government expects total production to reach approximately 98 million tonnes in 2026.

An interesting point: Oil remains one of Kazakhstan’s most important sources of export revenue, but the government has been actively promoting manufacturing, transport, construction, agriculture and other non-resource industries to diversify the economy.

Kazakhstan is also positioning itself as a key transit hub between China, Central Asia and Europe. Growing investment in railways, roads and the Trans-Caspian International Transport Route could give the country an additional source of long-term economic growth beyond its traditional reliance on energy exports.

Despite the decline in oil output, the latest figures indicate that Kazakhstan’s broader economy continues to expand – a potentially important sign for its diversification strategy.

Kyrgyzstan, Russia launch joint military exercise

A joint tactical military exercise between Kyrgyzstan and Russia has begun in the city of Balykchy, located on the shores of Lake Issyk-Kul in Kyrgyzstan, AzerNEWS reports.

The opening ceremony was attended by the exercise commander, Colonel Kojoshev, head of the Russian Armed Forces’ military contingent, Deputy Commander of the 201st Military Base, Lieutenant Colonel Lakeyev, and Head of the Mayor’s Office of Balykchy, Kukeyeva.

Up to 500 military personnel, around 100 units of weapons and military equipment, combat FPV drones, and army aviation have been deployed for the exercise.

The joint tactical exercise is being held within the framework of bilateral cooperation between the defense ministries of the two countries and will run from August 11 to 17.

Armenia could import gas from Azerbaijan in future

Armenia could potentially begin importing natural gas from Azerbaijan in the future, according to Sarkis Khandanyan, a lawmaker from Armenia’s ruling Civil Contract party, AzerNEWS reports.

Speaking at a briefing, Khandanyan said that the construction of a gas pipeline could be considered as one of the options for diversifying Armenia’s gas supplies within the framework of the TRIPP project.

The proposed infrastructure is expected to pass through Armenian territory and could potentially provide the country with access to an additional source of natural gas.

Khandanyan stressed that the idea remains a theoretical possibility for now. However, he said he did not expect the technical implementation of such a project to present any major difficulties.

The Armenian lawmaker also addressed the issue of Russian gas prices, saying that if the question of changing the price arises, Yerevan intends to discuss it with Moscow within the framework of their partnership.

At the same time, Khandanyan emphasized the importance of reducing Armenia’s dependence on a single gas supplier.

He also did not rule out the possibility of Armenia directly importing natural gas from Azerbaijan, potentially opening a new dimension in energy relations between the two neighboring countries.

Russia raises prospect of Armenia losing CSTO powers at Moscow summit

Russian Deputy Foreign Minister Mikhail Galuzin said that the issue of potentially restricting Armenia’s powers within the Collective Security Treaty Organization (CSTO) could be discussed at the organization’s summit in Moscow on November 11, AzerNEWS reports, citing TASS.

According to Galuzin, any decision on restrictive measures against CSTO member states is made by the organization’s Collective Security Council. He noted that the council’s authority to take such decisions is established in the CSTO’s charter.

Galuzin emphasized that the CSTO charter is an international treaty and therefore creates obligations for all participating states. Among other requirements, member countries are expected to provide timely financial contributions to support the organization’s activities.

Earlier, the permanent representative of the Russian Federation to the CSTO, Viktor Vasiliev, said that in order to deprive Armenia of the right to vote in the organization’s bodies, it is necessary to reach a consensus among the organization’s participants.

On June 10, Russian Foreign Minister Sergei Lavrov stated that Armenia had accumulated debts to the organization for more than two years.

The remarks come amid continued tensions between Armenia and the CSTO, as Yerevan has significantly reduced its participation in the organization’s activities.

President Ilham Aliyev inspected ‘Master Plan for the Development of Nakhchivan City until 2044’ [PHOTO/VIDEO]

On August 11, President of the Republic of Azerbaijan Ilham Aliyev and First Lady Mehriban Aliyeva inspected the ‘Master Plan for the Development of Nakhchivan City until 2044.’

Anar Guliyev, Chairman of the State Committee on Urban Planning and Architecture, briefed the head of state and the First Lady on the new Master Plan, the targets set for the city’s future development, and the projects envisaged under the plan.

It was reported that the Master Plan was prepared by the ‘Azermemarlayiha’ Senior State Design Institute and the international consulting firm Chapman Taylor, commissioned by the State Committee on Urban Planning and Architecture, in accordance with the ‘State Program for the Socio-Economic Development of the Nakhchivan Autonomous Republic for 2023-2027.’

Prepared for the first time during the period of independence for Nakhchivan city, one of Azerbaijan’s oldest settlements, the new Master Plan defines a unified strategic vision for the city’s long-term spatial development. The concept was formulated around the renewal of the city center, expansion of recreational zones, promotion of sustainable mobility, strengthening of residential and social infrastructure, and more effective realization of the city’s tourism potential.

One of the main directions of the city’s development is the transformation of its central part. For this purpose, a detailed plan has been prepared for the central district covering an area of 74 hectares, along with a new architectural concept for a 12.5-hectare area within this district, while preserving the existing planning structure. The project envisages transforming the city center into a more vibrant, compact, and accessible space. According to the concept, obsolete non-historical buildings are proposed to be systematically renovated or replaced with modern multi-story residential and multifunctional buildings. The project also envisages establishing a new administrative complex in the area and transforming the central square into a human-centered public space through the addition of new landscaping and small architectural elements. As a result of these approaches, a modern city center will be created where residential, work, service, recreational, and public functions complement one another.

With the aim of making ecological infrastructure an integral part of the city, implementation of the Master Plan will also expand the existing green space network, integrate the area along the Nakhchivanchay River into urban life, and create new parks, recreational areas, and public spaces. As a result, green space per capita is planned to increase from 15 square meters to 27 square meters.

The approach to urban mobility is also based on new principles. Supporting the implementation of sustainable and environmentally friendly transport solutions, the concept envisages a total street and road network of 188.4 kilometers and 122 kilometers of bicycle infrastructure. This means that more than 65 percent of the total street and road network will be adapted for cycling.

The Master Plan identifies Nakhchivan’s rich historical and cultural heritage and favorable geographic location as key advantages shaping the city’s tourism potential. Alongside preserving historical heritage, expanding the service sector and improving the quality of the urban environment will enhance the competitiveness of the tourism sector.

The future development of Nakhchivan is planned with the city’s growth potential in mind. According to the Master Plan, the residential area is projected to increase from 1,831 hectares to 2,630 hectares over the specified period. Consequently, the city’s existing territory is expected to expand by approximately 44 percent, while its population is projected to grow from 97,200 to 130,000 residents.

Taking population density into account, the housing stock is projected to reach 3.9 million square meters. This will provide an average of 30 square meters of living space per capita, laying the groundwork for the comprehensive development of new residential neighborhoods equipped with social, transport, and engineering infrastructure.

In parallel with urban growth, social infrastructure will also be expanded. To meet education and healthcare needs, the capacity of general education institutions is projected to reach 23,400, preschool institutions 7,800, and hospital beds 650. Driven by growth in services, transport and logistics, industry, construction, tourism, and agriculture, the level of employment is expected to increase by nearly 40 percent, reaching 78,000 people.

Thus, as a strategically vital part of the Middle Corridor, Nakhchivan city will develop into a dynamic hub with even greater potential by 2044. By harmonizing the city’s historical and cultural heritage with modern urban planning principles, the new Master Plan establishes a strategic framework for its development as a sustainable, inclusive, and human-centered regional center.

Baku to host int’l forum on Middle Corridor, TRIPP and Eurasia’s transport future

Baku will host an international conference in September, bringing together government officials, transport operators, investors and experts to discuss the future of Eurasia’s transport corridors amid shifting global supply chains and the emergence of alternative trade routes between Asia and Europe.

According to AzerNEWS, the 5th International Conference and Exhibition, Black and Caspian Freight Forum 2026: Corridors, Infrastructure, Investments, will be held on September 7-9 at the Four Seasons Hotel Baku.

The forum will focus on the transformation of the regional and international transport system, with particular attention to the development of the Middle Corridor, infrastructure investment, cargo flows across the Caspian Sea and the growing connectivity between Central Asia, the South Caucasus, Trkiye and European markets.

The event is being organised by RDL Group, with the support of CASPIA Analytical Center and TransConsulting.

According to the organisers, the restructuring of global supply chains and changing trade routes are creating growing demand for alternative transport connections linking Asia and Europe.

A central theme of the forum will be the development of the Middle Corridor, also known as the Trans-Caspian International Transport Route, which connects China and Central Asia with the South Caucasus, Trkiye and Europe.

Participants will examine the corridor’s prospects as well as the practical challenges affecting its efficiency, including infrastructure capacity, port and railway networks, coordination between different modes of transport, investment needs and the digitalisation of logistics.

The forum will also examine the changing dynamics of cargo flows across the Caspian Sea and the development of transport infrastructure in the wider Black Sea-Caspian region.

Discussions are expected to address cooperation between transport operators and efforts to connect the transport networks of Central Asia and the South Caucasus more closely with the Black Sea and European markets.

Particular attention will be given to emerging regional infrastructure initiatives, including TRIPP (Trump Route for International Peace and Prosperity), and their potential implications for regional connectivity.

The initiative is expected to be discussed alongside broader questions surrounding the development of international transport corridors and the changing geography of trade across Eurasia.

Investment in ports, railway networks and other transport infrastructure will also feature prominently on the forum’s agenda. Other topics will include multimodal transportation, logistics digitalisation, maritime transport across the Caspian and Black seas, and the long-term prospects of international freight corridors.

The three-day event is expected to bring together representatives of government institutions, international financial organisations, ports and railway companies, transport and logistics firms, investors, businesses and expert organisations.

The organisers have also invited members of the media to cover the Black and Caspian Freight Forum 2026.

Media representatives seeking accreditation are required to provide the full name of the journalist or media representative who will cover the event.

Ismayilli-2 Hydropower Plant generates 34 million kWh of clean energy

The Ismayilli-2 Small Hydropower Plant (SHPP), located near the village of Sumagalli in Azerbaijan’s Ismayilli district, has generated a total of 34 million kilowatt-hours (kWh) of electricity since it began operations through July 1 this year.

AzerNEWS reports Azerbaijan’s Ministry of Energy told Report that small hydropower plants produce environmentally friendly electricity without emitting greenhouse gases into the atmosphere.

The Ismayilli-2 SHPP was officially inaugurated on August 10, 2016. The plant has a total installed capacity of 1.581 megawatts (MW).

Sanctioned oil tanker carrying 1 million barrels sinks off oman coast

A sanctioned oil tanker carrying approximately 1 million barrels of crude oil is sinking off the coast of Oman, according to Arab News, which cited satellite imagery, AzerNEWS reports.

The tanker, Caroline Bezengi, ran aground about two months ago in a protected area near Kibliya Island, off southwestern Oman.

Satellite images released by the publication show an oil slick covering nearly 800 square kilometres, raising concerns about the incident’s potential environmental impact.

The tanker’s cargo and its sanctioned status could further complicate efforts to manage the spill and assess the environmental damage.