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Indonesia, Kazakhstan eye major deals in energy and trade

Jakarta (ANTARA) – Indonesia and Kazakhstan are open to strengthening cooperation in strategic sectors, including energy, industry, agriculture, food processing, textiles, Islamic banking, the digital economy, education and tourism.Indonesia views Kazakhstan as a strategic partner in the Central Asian and Eurasian regions, Coordinating Minister for Economic Affairs Airlangga Hartarto said in his statement on Monday, following his meeting with Kazakh Prime Minister Olzhas Bektenov in Astana.“With Kazakhstan's geographical position and regional connectivity, there are significant opportunities to strengthen trade, investment and industrial partnerships between the two countries,” Airlangga stated.In the energy sector, both countries emphasized the importance of cooperation on energy transition and renewable energy development, as Indonesia reaffirmed its commitment to achieving the net-zero emissions target by 2060.Airlangga and Bektenov also discussed opportunities for collaboration in geothermal development, industrial downstreaming and the development of electric vehicle and battery ecosystems. Exploring cooperation in the oil and gas sector was also discussed.In the digital economy, Indonesia stated its target of increasing the value of the national digital economy from around US$130 billion to US$200 billion by 2030. Both countries view digital transformation as a new strategic area for strengthening bilateral economic relations in the future.Meanwhile, in the investment sector, Indonesia and Kazakhstan emphasized the need of strengthening investment mechanisms and business facilitation. The Astana International Financial Centre is considered a crucial platform to support investment and regional economic connectivity.During the meeting, the two sides discussed opportunities to leverage Kazakhstan's strategic position as a transit route, develop international transportation corridors, and strengthen logistics routes and trade terminals for Central Asian and Eurasian markets. In addition, both sides discussed the importance of strengthening economic cooperation to support smoother trade flows and expand market access.Airlangga stated that Indonesia continues to actively promote increased trade with countries in the Eurasian Economic Union region following the free trade agreement signed by both parties in December last year. As one of the largest economies in Central Asia, Kazakhstan is Indonesia's main partner in expanding trade within the Eurasian region, Airlangga noted.With a GDP of approximately US$333.7 billion and projected economic growth of 6.5 percent in 2025, Kazakhstan is seen as a strategic partner for Indonesia in strengthening trade, investment, logistics connectivity, energy, strategic minerals, and digital transformation.Meanwhile, Bektenov emphasized the Kazakh government's commitment to expanding trade and investment relations with Indonesia.“Kazakhstan places great importance on expanding trade and economic relations with Indonesia. We believe there is significant potential to further enhance these achievements, and we are very interested in expanding investment cooperation,” Bektenov said.