Business as Usual Between Russia and Indonesia, Despite Political Tensions in Ukraine
Jakarta. The Russian government and an Indonesian business group have dismissed fears that political tensions between Russia and Western countries will disrupt the budding economic relationship between Indonesia and Russia.
"There is no impact at all from the developments in Ukraine towards the relationship between Indonesia and Russia," Mikhail Galuzin, Russia's ambassador to Indonesia, told reporters in Jakarta on Tuesday.
"Both countries are eager to develop their relationship for their mutual benefit," he said.
Russia formally annexed Crimea on March 21, five days after newly installed pro-Russian leaders held a referendum that yielded an overwhelming vote to join Russia.
Many Western nations and Ukraine said that the referendum was illegal.
Galuzin said that Russian-speaking people in Crimea felt that their rights were being violated by the current government in Ukraine.
The current power in Ukraine was "under a lot of pressure from extremists, radical and anti-Russia groups," he said.
Chairman of the Indonesian Chamber of Commerce and Industry (Kadin), Suryo Bambang Sulisto, backed Galuzin's sentiment.
"Russia may see declines in trade with the US and European countries, but I don't see it will impact relations with Asia. Indonesia should capitalize on Russia's interest to strengthen the relationship," Suryo said.
Alexey Likhachev, Russia's deputy minister for economic development, was in Jakarta on Tuesday, for additional talks with the Indonesian government and businessmen about forming economic partnerships.
More than 40 Russian companies are on business missions in Southeast Asia, and they are starting in Indonesia, Likhachev told reporters in Jakarta. Each of them is proposing at least five projects, each valued at billions of dollars, he said.
"The relationship so far [between Russia and Indonesia] has been very dynamic," Likhachev said. "The trade between our countries in the past few years has tripled to $3 billion."
Likhachev says that the Russian government and businesses are looking into opportunities to invest in Indonesia's energy sector, transportation infrastructure, and aviation technology.
He added that Russian companies are also looking into the possibility to market their consumer electronic products to Indonesia.
United Company Rusal, the world's largest aluminum company, signed a memorandum of understanding with its Indonesian partner Arbaya Energi, to build an alumina plant in West Kalimantan. Hatta Rajasa, Indonesia's Coordinating Minister for Economic Affairs, said that Rusal may invest about $3 billion for the plant. Arbaya is part of Satmarindo Group, which is controlled by Suryo Bambang Sulisto.
Russian Railways, Russia's largest railway and locomotive company, is investing about $2 billion on a railway in East Kalimantan. Kamaz, Russia's largest truck manufacturer, is also planning to build an assembly plant for its trucks in Indonesia.
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