Why Prabowo-Putin Eye Fertilizer and Shipbuilding Investments - Tempo.co English
TEMPO.CO, Jakarta - Indonesia and Russia are exploring potential investments in fertilizer, energy, mineral resources and shipbuilding as the two countries seek to expand economic cooperation.
The discussions followed a meeting between Indonesian President Prabowo Subianto and Russian President Vladimir Putin in Vladivostok on Thursday, September 3.
According to Antara, among the proposals, Indonesia is considering a potential investment by state-owned fertilizer producer Pupuk Indonesia in a urea fertilizer plant in the Russian city.
Investment and Downstreaming Minister and Danantara CEO Rosan Roeslani said Pupuk Indonesia had signed a joint study with its Russian counterparts to assess the feasibility of the proposed investment.
"At its core, together with the president director of Pupuk Indonesia, we have just signed a joint study to assess the potential for Pupuk Indonesia to invest in Vladivostok in urea fertilizer," Rosan said in Jakarta on Friday.
The proposed fertilizer investment comes as Pupuk Indonesia seeks to expand beyond the domestic market. Rosan said the company's improved performance and efficiency had created opportunities for it to explore overseas investments.
The move could also have implications for Indonesia's supply security. Rosan said cooperation with Russia could help strengthen the country's supply and industrial resilience.
"We hope this can be a strategic step that will also strengthen our supply resilience and industrial resilience," he said, as quoted by Antara.
Vladivostok's location could make it particularly attractive for the fertilizer company. Situated on Russia's Pacific coast, the city provides access to markets across the Pacific, an important region for Pupuk Indonesia's business.
Pupuk Indonesia President Director Rahmad Pribadi said the city's location was one of the factors that made the potential investment interesting.
"Vladivostok is interesting because it faces the Pacific, which has long been one of Pupuk Indonesia's main markets," Rahmad said.
Fertilizer was not the only potential area of cooperation discussed by Prabowo and Putin. Shipbuilding also emerged as another opportunity, particularly in connection with Indonesia's fisheries sector.
Putin offered Indonesia an advanced vessel measuring more than 102 meters in length that could be used to process fishery products directly.
Rather than bringing catches back to shore before processing, such a vessel would allow some processing to take place at sea. Indonesia, with its extensive maritime territory and large fisheries industry, could potentially benefit from such technology.
Prabowo plans to send a team to study the vessel's technology and assess its potential applications in Indonesia.
The proposals are part of a broader effort to expand Indonesia-Russia economic relations. Rosan also pointed to the planned ratification of a free trade agreement between Indonesia and the Eurasian bloc, which could further expand opportunities for trade and investment.
Indonesia-Russia trade grew by more than 12 percent last year, according to Rosan.
"So the momentum is very good and very timely. This can expand trade, cooperation, partnerships and investment between the two countries," he said.
