Jakarta. Indonesia and Turkey have agreed to draw up a long-term roadmap for strategic industrial cooperation, Industry Minister Agus Gumiwang Kartasasmita said on Monday.

The commitment was reached during a bilateral meeting between Agus and Turkish Industry and Technology Minister Mehmet Fatih Kacir at the 12th Annual Teknofest Aerospace and Technology Festival, held Saturday at Istanbul’s Ataturk International Airport.

The talks build on two years of intensified engagement between the two countries. “Since our visit to Turkey in June 2024, major corporations such as Sanko Holding, Arcelik (KOC Holding), and Kordsa (Sabanci Holding) have expressed strong interest in investing in Indonesia,” Agus said.

Investment Expansions
Sanko Holding has begun tuna farming operations in Biak, Papua. Agus encouraged the firm to expand into downstream processing, shipbuilding, and renewable energy, including hydropower projects.

Kordsa, already operating in Bogor producing tire materials, is investing in high-value composite materials for export. After opening an R&D facility in 2023, it plans to produce composites, airbags, and building reinforcement products. Agus suggested the company apply for fiscal incentives such as a “super tax deduction” for research and development.

Arcelik, the world’s second-largest home appliance manufacturer, has partnered with a local firm to produce washing machines in Indonesia. It plans to expand into refrigerators and air conditioners, targeting Indonesia as a new Asian production hub alongside its existing base in Thailand.

Strategic Cooperation Framework
The momentum of bilateral cooperation was reinforced in February 2025 at the High-Level Strategic Cooperation Council, when Indonesian and Turkish presidents signed a joint statement to mark 75 years of diplomatic ties.

That summit produced 12 memoranda of understanding covering defense, energy, health, higher education, trade, and industry. A Joint Committee for Industrial Cooperation was also established, covering 14 strategic sectors from electric vehicle batteries and textiles to halal industries.

In addition, several corporate agreements were signed, including:

• Pertamina’s collaboration with Turkish Petroleum Corporation (TPAO) in oil and gas,
• A deal between Indonesia’s PAL and TAIS Shipyard to build Istanbul-class frigates,
• Joint ventures with Baykar and Roketsan to establish combat drone production facilities in Indonesia.

President Prabowo Subianto’s working visit to Turkey in April 2025 further deepened ties, focusing on strategic industries such as EV batteries, renewable energy, defense, and textiles. Agreements were also reached on vaccine production, as well as drone, missile, and military communications development.

On the business front, Indonesian firm Asia Pacific Rayon signed an export contract with Turkish partners for viscose fiber.

Agus said the industrial roadmap will serve as a guiding framework to expand cooperation across multiple sectors, supporting investment flows and technological exchange between the two nations.

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