Indonesia ready for broader economic partnership
Indonesia is ready for a broader partnership with Azerbaijan in the sphere of economy, Indonesian Ambassador to Baku Husnan Bey Fananie said at the event dedicated to the 72nd anniversary of the country’s independence.
The diplomat noted that the trade turnover between Azerbaijan and Indonesia increased from $19 million in 2015 to $46 million in 2016.
“This is an indication that the two countries have many opportunities for the further development of relations,” the Ambassador said.
Speaking at the event, Azerbaijan’s Minister of Labour and Social Protection of Population Salim Muslimov noted that the share of Indonesia in Azerbaijan’s total trade turnover is only 0.7 percent.
The Minister said the trade turnover with the countries of the Organization of Islamic Cooperation makes 20 percent of Azerbaijan’s total trade turnover, and noted the need to increase the share of Indonesia. Indonesia recognized Azerbaijan’s independence on December 28, 1991. Bilateral relations between the two countries were established on September 24, 1992. The embassy of Azerbaijan in Indonesia was established in 2006, while the embassy of Indonesia in Azerbaijan was opened in 2010.
The trade turnover between the two countries is mostly related to the energy sector, as Azerbaijan is the second biggest supplier of crude oil to Indonesia after Saudi Arabia. Indonesia has been importing crude oil directly from Azerbaijan since 2015.
A total of 400,000-600,000 barrels of oil annually are imported to Indonesia from Azerbaijan. In addition, Indonesia buys mazut oil from Azerbaijan. Overall, in recent years Indonesia has been the third largest trade partner of Azerbaijan.
Last year, the Indonesian delegation visited Baku to discuss energy cooperation and consider opportunities for the joint work with Azerbaijan, which has huge experience in the oil and gas industry.