Bet on Jakarta: Russia and Indonesia establish interbank cooperation

The Russian Federation and Indonesia have begun negotiations on interbank cooperation, the Russian Embassy told Izvestia. After Jakarta joins the BRICS, this will make it possible to switch to payments in national currencies sooner, experts say, especially since the trade turnover between the two countries is growing: in the first quarter of 2025, it has already increased by 40%. Indonesia is gradually becoming one of Russia's key partners in Southeast Asia: President Prabowo Subianto has already met with Vladimir Putin twice in a year. Nuclear energy is one of the most promising areas for cooperation. Russia is ready to build nuclear power plants in an Asian country. In addition, the parties are conducting joint naval exercises, and Indonesia is already expected at the upcoming Zapad-2025 maneuvers of the Union State. About joint projects and the importance of Indonesia for the Russian Federation — in the material of Izvestia.

The Central Banks of Russia and Indonesia are developing payment instruments

Southeast Asia is one of the fastest growing regions, and Indonesia, with the largest Muslim population in the world, is its largest economy. The country is already in the top 20 in terms of GDP. Of course, it is of great interest to Russia, which has been actively exploring Asian (and other) markets in recent years. However, Moscow and Jakarta are already cooperating closely. With Indonesia joining the BRICS in 2025, the issue of trading in national currencies is becoming particularly relevant. This is one of the main areas of work on the unification line, including to reduce dependence on the dollar. To this end, Russia and Indonesia have already started negotiations on interbank cooperation.

—Currently, Russian and Indonesian financial regulators are working on various options for interbank cooperation and diversification of payment instruments," the Russian Embassy in that country told Izvestia.

Russia and Indonesia have been looking for ways to integrate rubles and rupees into mutual settlements for a long time. It has already been possible to switch to alternative currencies to the dollar and euro, Russian Deputy Minister of Industry and Trade Alexei Gruzdev said in April. "We see great prospects for national currencies, as it is (settlements in them. — Ed.) ensures stability," the deputy head of the Ministry of Industry and Trade emphasized. By the way, Indonesia's accession to the BRICS will accelerate this process, as the governments of the two countries now better understand each other's positions in the modern global economy, Teuku Rezashia, associate professor of International Relations at Padjajaran University and the Presidential University in Indonesia, tells Izvestia. The transition to calculations in national currencies, of course, will take some time, and not only because of technical issues.

"The financial authorities of both countries also need to resist pressure from the EU and the United States, which may see this as an economic threat," the expert says.

First of all, we are talking about secondary sanctions, which, despite progress in the Ukrainian settlement, have not yet been lifted. As with other Asian countries friendly to the Russian Federation, Russians prefer to work with banks in Indonesia, including through third countries. This guarantees that there will be no problems with calculations, Kirill Babaev, president of the National Coordination Center for International Business Cooperation, stressed in a conversation with Izvestia.

— The issue of bilateral settlements with Indonesia in national currencies has been raised more than once, but so far most transactions are carried out in dollars, sometimes yuan is used. I think that with an increase in trade turnover, the transition to settlements in rubles and rupees will be possible and the parties will be able to quickly agree on this," he said.

The trade turnover is just growing. By the end of 2024, it reached $4.3 billion, an increase of 2.5%, and in the first quarter of 2025 it has already increased by 40% due to counter supplies of Russian wheat and Indonesian agricultural raw materials. In general, Indonesia produces a lot of agricultural products that are important for the Russian industry, including palm oil.

In addition, Indonesia has a successful example of ASEAN partners. For example, Vietnam is already increasing the share of settlements with Russia in national currencies. During his visit to the republic in June 2024, Vladimir Putin called the figure at 60%, and this is only for the first quarter, although for the entire previous year such payments provided just over 40% of bilateral transactions. Russia and Myanmar are also seeking to increase the share of such settlements. A number of Malaysian companies have partially switched to trading with Russian businesses in yuan and dirhams. Thailand, the Philippines and Cambodia are still looking closely.

Promising projects in Russia and Indonesia

The settlement of interbank cooperation issues is necessary for the implementation of serious projects. However, there are those in Indonesia's financial circles who are not interested in establishing cooperation with the Russian Federation, focusing on the collective West, Alexander Popov, senior researcher at the Center for Vietnam and ASEAN Studies, draws attention.

Nevertheless, the country's top leadership demonstrates its commitment to developing relations with the Russian Federation. During the year, Indonesian President Prabowo Subianto visited Russia twice for talks with Vladimir Putin. In July 2024, he arrived as an elected head of state, and in June 2025, he officially became a key guest at the SPIEF as president of the country. The Indonesian delegation is also expected at the upcoming WEF, which will be held in Vladivostok on September 3-6. The embassy told Izvestia that the Russian side had sent a number of invitations at the ministerial and expert levels.

The Russian president called Indonesia one of the leading South Asian foreign trade partners. Following the recent talks in St. Petersburg, the leaders signed a Declaration on Strategic Partnership with a focus on trade and the economy, as well as a number of other intergovernmental agreements. In April, the parties signed a memorandum on the access of Russian halal products to the Indonesian markets, which, by the way, is very timely: this year the government launched a free meals program in schools.

Check with Jakarta: Putin called Indonesia one of the key partners in the Asia-Pacific region

The parties agreed to simplify the visa regime and strengthen cooperation in ASEAN, G20 and BRICS.

Deepening trade and economic cooperation opens the door to other promising areas. First of all, this is the energy sector, especially nuclear power — the Rosatom state Corporation is ready to build nuclear power plants in Indonesia. Jakarta is currently considering proposals from various countries, but it is impossible to ignore the fact that Russian technologies are already successfully operating in China, India, Bangladesh, Egypt and Turkey. European countries, such as Hungary, are also implementing them.

— Our partners have received our proposals regarding the integration of Russian-designed nuclear power plants into the archipelago's energy system, the location and operation of a small floating station and high-capacity units, taking into account the geographical features of the country. Now the "ball" in this matter is on the side of Jakarta," the embassy told Izvestia.

Given the country's energy needs, Russia is the best option, provided that Indonesia can train specialists in the field of nuclear technology and adheres to the detailed rules and protocols of the NPT and the IAEA, says Teuku Rezashia.

The Indonesian authorities are also interested in the supply of Russian oil and LNG. According to Alexander Popov, cooperation in the mining industry can also be very promising. Russian companies can help create facilities for bauxite processing and alumina production, including for the needs of the Russian aluminum industry. Cooperation for deep-sea mining and ensuring maritime security would be relevant, Rezashia adds. By the way, Russia and Indonesia have been conducting joint naval exercises since 2024. In addition, Jakarta has received an invitation to participate in the upcoming Zapad-2025 maneuvers of the Union State.