Indonesia's Industry Minister Agus Gumiwang Kartasasmita Announces Russia Partnership and Domestic Hilirization Drive

Indonesia signed seven memoranda of understanding at the INNOPROM 2026 industrial exhibition in Yekaterinburg, Russia, to expand its processed‑industry products into the Eurasian market. Minister of Industry Agus Gumiwang Kartasasmita said the agreements aim to deepen technology cooperation with Russia and integrate high‑value manufacturing, covering critical minerals, advanced manufacturing, energy, food security and industrial zones.

The sector showed a 5.04 % growth in Q1 2026, contributing 19.07 % of GDP (about Rp 1.18 trillion) and attracting 36.49 % of total investment, while employing roughly 20 million workers. Processed‑industry exports accounted for 83.61 % of Indonesia’s export value in Jan‑Feb 2026, reaching Rp 622.68 trillion. Bilateral trade with Russia rose 5.4 % to USD 4.8 billion in 2025, with Indonesian exports to Russia hitting USD 1.8 billion.

The United Nations Industrial Development Organization’s 2026 Industrial Development Report named Indonesia a best‑practice example of hilirization. Kartasasmita reaffirmed the government’s goal to boost value‑added products, create jobs and strengthen Indonesia’s role in global value chains. This strategy is linked to the National Strategic Projects (PSN) in Papua, which focus on infrastructure, connectivity and economic zones to develop local processing capacity, support SMEs and attract further investment. Local leaders such as Muhammad Falah of HMI UNJ and Bagus Wahyu Trianto of MPSI/HIPMI praised PSN’s potential to accelerate inclusive economic transformation in Papua.