Indonesia, the largest economy in Southeast Asia, has of late been drawing attention from the farthest corners of the globe, especially after its recent entry into the world`s top 20 economies. A resurgent Russia, also a member of the G20, has been making serious efforts to enhance its relations with the resource-rich Indonesia.
"Our relations with Indonesia have been growing in a dynamic way in recent years. The leaders of both countries have agreed to forge a strategic partnership in the near future." Russian Ambassador to Indonesia Alexander A. Ivanov, an adept career diplomat, told The Jakarta Post in a recent interview at his office. According to Ambassador Ivanov, the real momentum came after Russia's then president Vladimir Putin visited Indonesia in 2007.
"Since 2007, our bilateral trade has gone up significantly. Last year, the bilateral trade value surpassed the USS1 billion mark," Ivanov said. For instance, Ivanov continued, it was agreed at the time of Putin's visit that bilateral trade must reach $1 billion by the end of 2008. But it reached $1.40 billion in 2008, an increase of 57.2 percent from the trade value in 2007.
Based on Indonesian statistics, trade was much higher. In 2008, bilateral trade more than doubled to $1.66 billion, an increase of 114.49 percent from the $777.42 million posted in 2007.
"We have a different method of calculating our trade figures. That's why our figures differ from Indonesian figures," Ivanov explained. Russia mainly exports steel and high-tech products, chemicals, fertilizers and paper and pulp to Indonesia, and imports mainly coffee, tea, palm oil, tobacco, garments and electronic equipment from the archipelago. The balance of trade is heavily in favor of Russia, thanks to its high-tech products and machinery. Despite the significant growth in trade last year, much more can still be achieved, said the ambassador. "It doesn't reflect the true potential of our two countries," Ivanov said. When asked about the impact of the global financial crisis on the growing economic ties between Russia and Indonesia, Ivanov said he was optimistic it would not affect the ties very much.
"The financial crisis may affect our bilateral trade this year. But I hope it will not affect bilateral trade very much," Ivanov said.
The main reason, according to Ivanov, was the growing interest between RussiaD businesspeople and their Indonesian counterparts to enhance trade. "For example, we had three Russian business missions visit Indonesia during the past year," Ivanov said.,
On the investment side also, more and more Russian companies have been showing an interest in Indonesia.
"The process of Russian companies investing in Indonesia started two years ago. Russia lagged behind Indonesia's main business partners. But we are coming in a big way," declared Ivanov. "Our oil and gas company Pet-ros won a contract to develop an oil field in East Java. Our aluminium company Rusal wants to invest in a $3.5 billion project in cooperation with PT Aneka Tambang," Ivanov said. Russian giants like Gazprom and Lukoil, Ivanov said, were currently conducting feasibility studies to invest in Indonesia. Russian investors have shown a special interest in investing in the free trade zone of Batam, Bintan and Karimun islands. To take the existing relations to a new level, Ivanov has a raft of ideas. "First we should have a direct air link between Russia and Indonesia. Luckily, we will soon sign an agreement on air transportation with Indonesia. This will boost our relations," Ivanov said. |  Ivanov then plans to talk to Indonesian Chamber of Commerce and Trade (Kadin) to establish a Russian-Indonesian Business Council for greater interaction between businesspeople from both countries.
The cooperation in the defense sector forms an important part in the growing ties between the two giants.
"We have given state credit of $1 billion to Indonesia on the most favorable terms. This shows our intention to enhance our relations. With this money, Indonesia bought fighter jets and helicopters from us," Ivanov said. So far, Russia has handed over 10 fighter jets, both SU-27s and SU-30s, and six helicopters to Indonesia.
In addition to the flow of goods between Russia and Indonesia, there is also a big flow of tourists between the two countries.
"About 50,000 Russians visited Indonesia, particularly Bali, in 2008. Bali is so popular that we opened a Russian Consulate there," said the ambassador, who can sing Indonesian songs very well. There is also a growing interest among Indonesians to learn more about Russia and its language.
"There is a growing interest in the Russian language among Indonesians. A competition on Russian literature took place recently. We are planning to organize several cultural events to celebrate the 60 years of relations between Indonesia and Russia," Ivanov said.
He added Russia and Indonesia had much in common. "Russia and Indonesia are both multicultural, multi-religious countries. We have 20 million Muslims in the whole of Russia. We are working with Indonesia to promote inter-faith dialogue among different religions," Ivanov said. In a nutshell, Ivanov emphasized both countries deserved to be strategic partners. "We are moving in that direction," Ivanov said. 
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