Russian President Vladimir Putin hosted Indonesian President Prabowo Subianto on Thursday in the Russian city of St Petersburg, as Moscow continues its push to deepen ties across the Global South amid mounting Western efforts to isolate Russia over its invasion of Ukraine.
The high-level meeting culminated in the signing of a declaration on strategic partnership between the two nations. In a parallel move, Indonesia’s sovereign wealth fund, Danatara, and the Russian Direct Investment Fund inked an agreement to establish a joint investment fund valued at 2 billion euros ($2.29 billion). The CEOs of both investment bodies were also present in St Petersburg for the occasion.
Following the talks, President Prabowo described the bilateral relationship as “getting stronger again.”
“My meeting with President Putin today was intense, warm and productive. In all fields of economics, technical cooperation, trade, investment, agriculture – they all have experienced significant improvements,” he said in a statement.
The meeting took place at the historic Konstantin Palace, where President Putin acknowledged Indonesia’s formal entry into the BRICS group of emerging economies — Brazil, Russia, India, China, and South Africa — now including Indonesia as a full member.
“Our relations with Indonesia are developing steadily. Trade turnover is growing. We have good prospects in a number of promising and very interesting areas of cooperation,” Putin said, as reported by Russian state media outlet TASS.
“This includes agriculture, space, and energy, as well as military-technical cooperation. Our interaction is very great, and it is growing,” he added.
Indonesia, Southeast Asia’s largest economy, continues to rely heavily on coal for power generation, despite vast potential in renewable energy sources like hydro, solar, and geothermal. The country is now exploring nuclear power as part of its strategy to expand energy output while keeping carbon emissions in check.
Maintaining a neutral foreign policy, Jakarta has carefully navigated the geopolitical competition between China and the United States. However, President Prabowo, who assumed office last year, has been working to diversify Indonesia’s global partnerships beyond traditional Western allies.
His decision to forgo the G7 summit in Canada this week in favour of high-level talks with President Putin has raised concerns among observers about a potential pivot toward Moscow. These concerns come amid deepening military cooperation between the two nations, including their first joint naval drills last year.
President Putin also confirmed that both leaders will participate in the plenary session of the St Petersburg International Economic Forum on Friday, a high-profile event that serves as a platform for Moscow to showcase its economic engagement with non-Western partners.
The evolving ties between Russia and Indonesia reflect broader geopolitical shifts, as countries in the Global South explore alternative alliances in response to growing tensions between global powers.
