Andhini Octa Maharatih and Alinda Rana Permata Surya
In addition to defense and economic cooperation, Moscow offered several scholarships for Indonesian students to study in the nation. Nikita S. Khrushchev, the Soviet leader at the time, warmly welcomed Indonesian students to the University of Russia in Moscow in 1960. Infrastructure development, such as the construction of the Bung Karno Stadium, was also credited largely to Soviet support.
Why Indonesia Prefers Russian Defence Supply Over American?
Indonesia has viewed Russia as a strategic partner in defense and security technology development. In addition to being a producer of modern weaponry, Russia offers relatively low prices and simpler regulations for defense equipment sales. Although Indonesia has not yet fully developed its own defense equipment, Russia has shown openness to technology transfer, allowing Indonesia to modify and adapt this technology domestically. This contrasts with the United States, whose strict regulations are seen as less favorable to Indonesia. As a result, Russia has become a more attractive partner for long-term defense and diplomatic cooperation.
Although relations cooled after the Indonesian Communist Party’s (1965 G30S) rebellion—when Indonesian students in Russia were repatriated—ties gradually improved after the political situation stabilized.
New Order and Post-Suharto Era
During the New Order regime, Indonesia leaned more toward the West due to the lingering effects of the communist threat. Under President Soeharto, Indonesia’s relationship with Russia began to recover after 22 years, marked by a diplomatic visit to Russia in 1989.
Following this, Indonesia entered a difficult period of political transition, facing domestic conflicts that required inward focus. Relations with Russia improved again under President Megawati Soekarnoputri, the fifth President of Indonesia. Under her leadership, cooperation that had stalled was revived in 2003, especially in technology and economic development.One example was the cooperation between Vneshtorgbank and PT Bank Mandiri to support Indonesia’s banking system during a global financial crisis. Although Megawati’s presidency was brief, she reopened channels for engagement between the two nations.
President SBY’s Era
President Susilo Bambang Yudhoyono (SBY) continued and expanded this cooperation. Beginning in 2007, SBY intensified Indonesia’s bilateral relations with Russia, focusing on new areas such as investment, defense, and natural resources—including bauxite, aluminum, oil, and gas. These areas marked a new phase in Indonesia–Russia cooperation.
President Susilo Bambang Yudhoyono also promoted soft power diplomacy, particularly in tourism, and collaborated with Russia in defense modernization. Cooperation included technology transfers to Indonesia’s domestic defense industries such as PT Pindad, PT Dirgantara Indonesia, and PT PAL.
Indonesia’s closeness with Russia was evident during SBY’s presidency, especially in economic sectors. For instance, palm oil exports—although only 2% of Indonesia’s total exports in 2011—were considered significant. When talks of Indonesia joining BRICS arose, SBY remained neutral, stating that Indonesia was transitioning from a developing to an emerging economy and aimed to strengthen its national economy before joining.In competing for the Russian market, Indonesia faced challenges, especially from European countries dominating exports. To increase competitiveness, Indonesia sought to promote exports of automotive products, footwear, tires, and furniture. Trade between Russia and Indonesia increased by 4.9% in the 2011–2014 period for non-oil and gas sectors and continued to improve in 2016.
Jokowi’s Era, Connectivity and Strategic Expansion
Under President Joko Widodo (Jokowi), Russian investment in Indonesia significantly increased. Jokowi encouraged local governments to establish sister-city relationships to attract long-term and sustainable investments. Several sister-city partnerships were established, including:
- Jakarta–Moscow (continued from SBY’s era)
- Palembang–Belgorod
- Yogyakarta–St. Petersburg
- Magelang–Tula
The nature of these city connectivity projects are different, while all of them cementing Indonesia- Russia ties. The Magelang–Tula partnership, for instance, is based on similarities in geographical conditions. Tula is an advanced city in industry and agriculture, while Magelang, located between Mount Merbabu and Mount Sumbing, has a cool climate suitable for highland farming. The partnership, however, focuses more on public services, branding, economic development, and environmental management.
Meanwhile, the Yogyakarta–St. Petersburg partnership emphasizes cooperation in arts, culture, tourism, and education—proving effective in strengthening diplomacy during the Jokowi era. Long-term investments were also pursued, such as the oil refinery in the Jenu area, Tuban. This refinery, under cooperation between PT Pertamina and Russian company Rosneft, has been under construction since 2016 and is projected to process 30 million liters of fuel daily, with a capacity of 320,000 barrels per day. This project aims to enhance national energy security and reduce fuel imports.Despite geopolitical challenges such as the Russia–Ukraine conflict, Indonesia maintains a neutral, “free and active” foreign policy—supporting Ukraine’s independence while still partnering with Russia.
Indonesia in BRICS
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[ Andhini Octa Maharatih and Alinda Rana Permata Surya are interns at COGGS from Surabaya, Indonesia, and students of International Relations at UPN Veteran Jawa Timur University. The opinions expressed do not reflect the views of COGGS. ]
