Press release on consultations of Deputy Foreign Minister Igor Morgulov in Indonesia

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RUSSIAN-INDONESIAN RELATIONS

The Soviet Union and the Republic of Indonesia established diplomatic relations on February 3, 1950. On December 28, 1991, the Government of Indonesia recognised the Russian Federation as the Soviet Union’s legal successor.

On April 21, 2003, President of Indonesia https://en.wikipedia.org/wiki/Megawati_Sukarnoputri" title="">Megawati Sukarnoputri paid a visit to Russia, with both sides signing the Declaration on the Foundations of Friendly and Partner Relations between the Russian Federation and the Republic of Indonesia in the 21^st Century.

In 2006, President of Indonesia https://en.wikipedia.org/wiki/Susilo_Bambang_Yudhoyono" title="">Susilo Bambang Yudhoyono visited Russia, with President Vladimir Putin visiting Indonesia in 2007. Russian and Indonesian heads of state maintained bilateral contacts on the sidelines of the APEC summit (Honolulu in 2011, Vladivostok in 2012, Bali, Indonesia, in 2013 and Beijing in 2014), as well as during the 2012 G20 summit in Los Cabos, Mexico.

On July 25, 2014, President Vladimir Putin sent a message of greetings to Joko Widodo congratulating him on his victory in the Indonesian presidential elections. Minister of Industry and Trade Denis Manturov represented Russia during the October 20, 2014 inauguration of President of Indonesia Joko Widodo.

In February 2015, national presidents and foreign ministers exchanged messages of greetings in connection with the 65^th anniversary of the establishment of diplomatic relations.

On May 18−20, 2016, President of Indonesia Joko Widodo paid a working visit to Sochi, Russia. During the visit, President Vladimir Putin held talks with Joko Widodo. The President of Indonesia also attended the anniversary Russia-ASEAN summit.

In April 2015, Russian Deputy Prime Minister Arkady Dvorkovich attended the World Economic Forum on East Asia in Jakarta. In August 2015, talks between Arkady Dvorkovich and Indonesia’s Minister of Maritime Affairs and Fisheries Susi Pudjiastuti took place in Moscow.

In March 2016, Arkady Dvorkovich had a meeting with Vice President of Indonesia Jusuf Kalla in China on the sidelines of the Boao Forum for Asia.

Both countries maintain close inter-parliamentary ties. In 2011, https://en.wikipedia.org/wiki/Marzuki_Alie" title="Marzuki Alie">Marzuki Alie, Speaker of the People's Representative Council, the lower house of the Indonesian Parliament, visited Russia. In May 2013, Irman Gusman, Speaker of the https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">Regional Representative Council, the upper house of parliament, visited Russia. In September 2013, https://en.wikipedia.org/wiki/Sidarto_Danusubroto" title="Sidarto Danusubroto">Sidarto Danusubroto, Chairman of the People's Consultative Assembly (Parliament) of the Republic of Indonesia, visited Russia.

In November 2014, Valentina Matviyenko, Speaker of the Federation Council, the upper house of the Russian Federal Assembly (Parliament), paid an official visit to Indonesia. In October 2015, Irman Gusman visited Moscow and St. Petersburg.

In June 2015, a delegation from the Indonesian Parliament’s People's Representative Council headed by Deputy Speaker Fadli Zon visited Moscow and St. Petersburg.

In March 2016, First Deputy Federation Council Speaker Nikolai Fyodorov visited Indonesia.

On April 19−20, 2016, Agus Hermanto, Deputy Speaker of the People's Representative Council, represented Indonesia at the First Meeting of Speakers of Eurasian Countries’ Parliaments (MSEAP) in Moscow.

Between July 14−17, 2017, Deputy Federation Council Speaker Ilyas Umakhanov visited Jakarta and had meeting with Zulkifli Hasan, Chairman of the People’s Consultative Assembly, Oesman Sapta Odang, Speaker of the https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">Regional Representative Council, Fadli Zon, Deputy Speaker of the People's Representative Council, Indonesia’s Minister of Maritime Affairs and Fisheries Susi Pudjiastuti and Prabowo Subianto, leader of the main opposition party, Great Indonesia Movement (Gerindra).

In January 2015, the Federation Council established a group for cooperation with Indonesia’s https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">Regional Representative Council, with the Indonesian side creating a similar group for cooperation with the Federation Council. The State Duma has also established a parliamentary group for maintaining contacts with the parliaments of Indonesia, Malaysia, Singapore, Thailand and the Philippines. In turn, a group for friendship and cooperation with Russia was formed at the https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">National Representative Council.

In August 2015, Jakarta hosted the 35^th session of the Chiefs of ASEAN Police (ASEANAPOL). Russian Interior Minister Vladimir Kolokoltsev attended the session and held bilateral meetings with Indonesia’s Coordinating Minister for Security Tedjo Edy Purdijatno and Indonesian National Police Chief Badrodin Khaiti.

Both countries’ judicial agencies also maintain contacts. On October 23−24, 2015, Indonesian Supreme Court Chief Justice Muhammad Hatta Ali visited Russia. On March 16−17, Russian Supreme Court Chairman Vyacheslav Lebedev visited Jakarta.

On November 12−14, 2014, the Indonesian Constitutional Court’s Chief Justice https://en.wikipedia.org/wiki/Hamdan_Zoelva" title="Hamdan Zoelva">Hamdan Zoelva visited St Petersburg, with both sides signing a memorandum for cooperation between the national constitutional courts. On April 22, 2016, Russian Constitutional Court Chairman Valery Zorkin had a meeting with the Indonesian Constitutional Court’s Chief Justice Arief Hidayat.

National foreign ministries maintain regular dialogue. In 2010, Indonesian Foreign Minister Marty Natalegawa visited Moscow. In August 2015, Foreign Minister Sergey Lavrov and Indonesian Foreign Minister Retno Marsudi had a conversation on the sidelines of ASEAN events held in Kuala Lumpur. On August 8−9, 2017, Foreign Minister Sergey Lavrov visited Indonesia. During his visit, both sides signed a plan of consultations between Russian and Indonesian foreign ministries for 2017−2019. Foreign Minister Sergey Lavrov held talks with Indonesian Foreign Minister Retno Marsudi and ASEAN Secretary General Le Luong Minh. Sergey Lavrov attended a ceremony for the opening of the Russian Federation’s permanent mission to ASEAN in Jakarta.

In December 2014, Moscow hosted consultations between national foreign ministries on multilateral cooperation. Jakarta and Moscow also hosted consultations between national deputy foreign ministers on bilateral cooperation matters in February 2015 and April 2017, respectively.

Inter-regional exchanges continue to develop. In May 2013, a delegation of businessmen from Tatarstan headed by President of Tatarstan Rustam Minnikhanov visited Jakarta. The sides signed a memorandum of understanding between chambers of commerce and industry of Tatarstan and Indonesia. In November 2014, a delegation from West Sumatra Province headed by Governor Irwan Prayitno visited Kazan. In December 2014, representatives of South Sulawesi Province headed by Mayor of Makassar Mohammad Ramdhan Pomanto visited the city of Oryol. In September 2015, Awang Faroek Ishak, the Governor of East Kalimantan Province, came to Moscow.

The fight against international terrorism is an important area of bilateral cooperation. In 2007, the countries signed an intergovernmental memorandum of understanding on cooperation in combating terrorism that came into force in 2010. Under the memorandum, a Russian-Indonesian working group to combat international terrorism was established in November 2010. In March 2012, Bali Island hosted the group’s second meeting. On January 29, 2016, Deputy Foreign Minister Oleg Syromolotov and Saud Usman Nasution, Chief of Indonesia’s National Counter-Terrorism Agency, chaired the group’s third meeting in Moscow.

In July 2012, the sides signed a cooperation agreement between the Russian Federal Financial Monitoring Service and the Indonesian Financial Transaction Reports and Analysis Center. The document aims to combat money-laundering operations and the financing of terrorism.

According to the Russian Federal Customs Service, the 2016 trade turnover totaled $2.6 billion in 2016 ($1.96 billion in 2015), exports and imports totaled $403 million and $2.2 billion, respectively. Between January and May 2017, bilateral trade volumes increased by 15 percent and reached $1 billion, with Russian exports and imports totaling $212 million (up 49 percent) and $810 million (up 8 percent), respectively.

In 2016, Russia mostly exported chemicals (37%) to Indonesia, as well as minerals (29.5 percent), metals and metalware (10.6 percent), foods and agricultural feedstock (8.4 percent), as well as timber and pulp-and-paper goods (7.4 percent). Russia mostly imported machinery, equipment and transport vehicles (42 percent), foods and agricultural feedstock (37.6 percent), textiles and textile goods (8.2 percent), chemicals and rubber (7.9 percent).

In 2016, Russia was in 38^th place among foreign investors and channeled $5.5 million in 32 projects, according to the Indonesia Investment Coordinating Board.

The Russian-Indonesia Joint Commission for Trade and Economic and Technical Cooperation was established in 2002. Minister of Industry and Trade Denis Manturov heads its Russian section since October 2014 and Darmin Nasution, the Coordinating Minister for Economic Affairs of Indonesia, heads the Commission’s Indonesian section since August 2015. On October 31, 2016, Jakarta hosted the Commission’s 11^th meeting, and Moscow is to host its 12^th meeting in October 2017. The commission has the following working groups: industry and investment, energy, transportation and infrastructure, contractual-legal framework of bilateral cooperation, and cultural and tourist exchanges.

The sides are working on joint projects in infrastructure construction, energy, production and processing of minerals, civil aviation as well as machinery and equipment deliveries.

In February 2012, the sides signed a memorandum of understanding between the administration of East Kalimantan Province and Kereta Api Borneo, a special projects company, representing the interests of railway giant Russian Railways (RZhD). The document stipulated the construction of a 190-kms long railway as well as industrial and port infrastructure facilities on the island. In November 2015, President Joko Widodo attended a ceremony of opening a railway line on Kalimantan Island.

In June 2016, Russian Railways and state-owned company Kereta Api Indonesia signed a cooperation agreement.

In October 2016, Russian Railways President Oleg Belozerov met with top managers of specialised Indonesian state companies and agencies in Jakarta to discuss prospects for the implementation of the above-mentioned project. Russian Railways was also ready to build and upgrade railways in the East Java and North Sumatra provinces.

Leading global aluminium producer RUSAL also operates on the Indonesian market. In February 2014, its representatives signed a memorandum of understanding with Indonesia’s Arbaya Energy Co. that stipulates the joint development of bauxite deposits and alumina production in West Kalimantan.

The fuel and energy sector remains a promising cooperation venue. In 2006, Russia and Indonesia signed an intergovernmental cooperation agreement on the peaceful use of atomic energy. This document entered into force in 2011. Rosatom State Atomic Energy Corporation is studying various options for Russian involvement in the creation of the Indonesian nuclear power industry. In June 2014, Djarot Wisnubroto, Chairman of the National Nuclear Energy Agency (BATAN), visited Moscow. In June 2015, Rosatom and BATAN signed a cooperation memorandum in Moscow.

Work continues to develop a low-capacity multifunctional experimental energy reactor in Serpong, Banten Province. In January 2017, an Indonesian nuclear energy oversight agency authorised the use of a site, selected by Rosatom, for building this facility.

In May 2016, representatives of Russian Rosneft and Pertamina Co. met in Jakarta and signed a framework cooperation agreement for building a refinery and a petrochemical facility in Tuban, East Java Province.

Under a May 2016 strategic partnership agreement between Inter RAO Export and Indonesia’s Trans-Asia Minerals Limited, there are plans to invest about $2.8 billion in

the construction of a coal-fired thermal power station in East Kalimantan Province and to upgrade an operational coal-fired thermal power station in Sumatra Island.

In 2000, a Russian launch vehicle orbited Indonesia’s Garuda-1 communications satellite. An intergovernmental agreement on exploring and using outer space for peaceful purposes entered into force in 2010.

In February 2017, the Intersputnik International Organisation of Space Communications and Universal Satellite Indonesia signed an agreement on the joint use of the Intersputnik-103E-F satellite network’s frequencies in orbits passing at 103 degrees eastern longitude.

In late July 2017, Russia’s Security Exports Association sent a specialised business mission that included leading national ICT companies to Indonesia. The mission’s members met with CEOs of Indonesian state agencies responsible for the digital economy’s development and security, as well as national companies specialising in this area.

The Russia-Indonesia Business Council was established in November 2009. It is currently headed by Geo Spectrum Group Director General Mikhail Kuritsyn.

Both sides continue to expand their cooperation in the field of communications and mass media. In March and November 2015, a delegation of Russian media outlets headed by Deputy Minister of Communications and Mass Media Alexey Volin visited Indonesia. In August 2016, an Indonesian delegation headed by H. Subiakto, an adviser on communications and media outlets to the Minister of Communication and Informatics, visited Moscow.

In 2004−2005, Russia took part in cleanup and disaster relief operations after devastating tsunamis and earthquakes. In 2006 and 2015, Russia helped put out forest fires in the Kalimantan and Sumatra islands. In 2009, the Russian side helped conduct cleanup and search-and-rescue operations for survivors after a series of powerful earthquakes hit Sumatra Island.

In January 2015, a combined 72-strong team of the Russian Ministry for Civil Defence, Emergencies and Disaster Relief took part in a search-and-rescue operation in the Java Sea after an Air Asia passenger plane crash on December 28, 2014.

In 2009, Indonesia hosted the Days of Russian Culture, with the Russian Federation hosting the Days of Indonesian Culture in 2010. The latter event was timed to coincide with the 60^th anniversary of the establishment of bilateral diplomatic relations. Indonesian performers regularly attend the Krasnoyarsk International Music Festival of Asia Pacific Countries. On August 20−21, 2016, Moscow hosted the Festival of Indonesian Culture. Indonesian Cuisine Week took place between March 3 and 7, 2017. On August 4−6, 2017, Moscow hosted the Second Festival of Indonesian Culture.

161 Indonesian students will be given free tuition at Russian universities during the 2017/2018 academic year.

In 2007, Moscow and Jakarta established twin city relations.

As of June 2015, Indonesian authorities allowed Russian citizens to stay in the country visa-free for up to 30 days.

About 65,000 Russian citizens visited Indonesia during 2016.

The Russian Centre of Science and Culture has been functioning in Jakarta since 1965.

the Republic of Indonesia

REPUBLIC OF INDONESIA

General information: Indonesia, a state in South East Asia, is located on 17,500 islands of the world’s largest Malay Archipelago and the western section of New Guinea Island. Its land territory has an area of 1,920,000 square kilometres. The area of Indonesia-controlled seas, including the inner sea, territorial and archipelago waters and the exclusive economic zone, totals 7.9 million square kilometres.

The country is divided into 32 provinces, including several provinces with a special status: Aceh, Papua and West Papua, as well as the Special Region of Yogyakarta and the Special Capital Region of Jakarta.

The country’s capital is Jakarta on Java Island with a population of over 10 million.

Population: 260.5 million (fourth most populous country).

The main religions include Islam (about 85 percent mostly Sunni Muslims), Christianity (Protestants and Catholics, with 10 percent), as well as Buddhism, Hinduism, Animism, Confucianism and other religions (5 percent).

National holiday: Independence Day (August 17, 1945).

State language: Indonesian, a standardised register of Malay.

Political system: The country is a unitary presidential republic. The President is the head of the state and the government being established by him or her and also Commander in Chief of the Armed Forces. The President is elected by direct vote for a period of five years.

Joko Widodo, the Governor of Jakarta, won the July 9, 2014 presidential elections. Joko Widodo and Vice President Jusuf Kalla were inaugurated on October 20, 2014.

The bicameral People's Consultative Assembly of the Republic of Indonesia is the top national legislature. It consists of the https://en.wikipedia.org/wiki/People%27s_Representative_Council" title="People's Representative Council">People's Representative Council (560 deputies) and the https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">Regional Representative Council (132 deputies). All deputies are elected for a period of four years through direct parliamentary elections. The latest parliamentary elections took place in April 2014. Zulkifli Hasan has served as Chairman of the Consultative Assembly since October 2014.

The https://en.wikipedia.org/wiki/People%27s_Representative_Council" title="People's Representative Council">People's Representative Council exercises all the main legislative functions. After the April 9, 2014 general parliamentary elections, ten political parties made it into the Council. Today, the ruling coalition headed by President Joko Widodo comprises the Indonesian Democratic Party of Struggle (109 seats), the Party of the Functional Groups, formerly Sekber Golkar (91 seats), the Democratic Party (61 seats), the National Mandate Party (48 seats), the National Awakening Party (47 seats), the United Development Party (39 seats), the National Democratic Party (36 seats) and the People’s Conscience Party/Hanura (16 seats). Opposition parties include the Great Indonesia Movement Party (Gerindra) with 73 seats and the Prosperous Justice Party (40 seats). Setya Novanto has served as the Speaker of the People's Representative Council since November 2016.

The https://en.wikipedia.org/wiki/Regional_Representative_Council" title="Regional Representative Council">Regional Representative Council was established in 2004 and is a consultative body affiliated to the https://en.wikipedia.org/wiki/People%27s_Representative_Council" title="People's Representative Council">People's Representative Council. Oesman Sapta Odang has served as its Speaker since April 2017.

Economy: Indonesia is an agrarian-industrial country with a well-developed mining industry. The industry and agriculture/fisheries account for 36 percent and 19 percent of its GDP, respectively, with the services and financial sector contributing another 23 percent.

In 2016, the national GDP grew by 5.02 percent and reached $900 billion. The per capita national income is $3,605.

The country’s international (gold and foreign currency) reserves total $116.9 billion.

In 2016, the country posted 3 percent inflation, as compared to 3.35 percent in 2015, with unemployment totaling 5.5 percent. Indonesia’s external debt is $325 billion.

The Indonesian rupiah is the national currency. In May 2017, the rupiah-dollar exchange rate was 13,400 rupiahs to the dollar.

The 2016 foreign trade turnover was $280 billion, with exports and imports totaling $144.4 billion and $135.6 billion, respectively. China, the US, Japan, India and Singapore are Indonesia’s main foreign trade partners, and Singapore, Japan and the PRC are the main investors.

Indonesia is the largest palm oil and coal exporter. Other major export items include liquefied gas (third place in the world), tin (fourth place), agricultural produce (natural rubber, copra, coffee, tea and spices), tropical timber and related goods.

Domestic politics: The Government of Joko Widodo focuses on expanding infrastructure modernisation, upgrading the production and human resource potentials, streamlining state administration, fighting corruption, protecting the interests of small and medium-sized businesses and strengthening national security.

Members of radical Muslim groups have become more active since late 2016. They are rallying under the banners of the Islamic Defenders Front and are negatively influencing the domestic political situation.

The national Muslim community’s violent response to statements made by former Governor of Jakarta Basuki Tjahaja Purnama, an ethnic Chinese, who was accused of “blasphemy” and insulting the Quran came as a new challenge for official authorities. In November 2016, about 100,000 Muslim activists staged all-out protests in the Indonesian capital. These protests repeatedly escalated into riots. In all, 15 people were injured, including three police officers. Some police vehicles were burned, and government agencies besieged. In April 2017, Purnama lost regular gubernatorial elections, and his current tenure is to expire in October 2017. In May 2017, an Indonesian court sentenced him to two years in prison. His defence team is currently preparing to appeal the verdict.

Local terrorist cells and extremist Islamic organisations supporting ISIS ideology remain a major threat to national stability. The Government of Indonesia has banned ISIS activities in the country.

On January 14, 2016, a terrorist attack killed three civilians and four terrorists in central Jakarta, and 24 more people were injured. Law enforcement agencies arrested the masterminds of the attack and perpetrators.

The Government is moving to combat separatist trends in Papua and West Papua where nationalist forces are talking of seceding from Indonesia and are attacking law enforcement divisions and employees of transnational companies operating there.

Foreign policy: The key principle of the Widodo administration’s foreign policy is pragmatism, a desire to obtain economic dividends and providing practical assistance to national development.

Jakarta perceives the United States, Russia, the Netherlands, the European Union, the People’s Republic of China, Japan, Australia, India, the Republic of Korea, Brazil, Vietnam, South Africa, Papua New Guinea, the United Kingdom, Germany, France and Turkey as its top-priority partners.

Indonesia is actively involved in the work of the UN, its guiding bodies and agencies, it is a member of the Organisation of Islamic Cooperation, the G20, the Asia Pacific Economic Cooperation forum, the Non-Aligned Movement, the Group of 77, the Asia-Europe Meeting (ASEM) mechanism, as well as some other forums and organisations.

For almost 60 years, Indonesian military contingents have been involved in UN peacekeeping operations in various hot spots. Today, over 1,800 Indonesian officers and soldiers are taking part in such operations.

Jakarta’s foreign policy prioritises ASEAN, primarily in the context of the trilateral ASEAN forum that was launched on January 1, 2016 and that aims to integrate the ten ASEAN member countries in the following three main areas: politics and security, economy and the socio-cultural sphere. Jakarta is actively involved in ASEAN-centric dialogue formats, including the East Asia Summit and the ASEAN Regional Forum.

Indonesia has always been trying hard to promote a Middle East peace settlement. Jakarta supports the soonest possible creation of a Palestinian state, condemns Israeli policies and does not maintain diplomatic relations with Israel. In March 2016, Jakarta hosted an emergency Organisation of Islamic Cooperation summit on issues of Palestine and Jerusalem’s holy places.

Indonesia voices a well-balanced position on the situation in Syria, advocates the inclusive nature of resolving the Syrian conflict with the involvement of all the concerned parties, including the Government of President Bashar al-Assad.

Indonesia also focuses on various new multilateral activities, and it presides in the Indian Ocean Rim Association (IORA) in 2016−2017. It also prioritises the MIKTA, an innovative partnership that brings together Mexico, Indonesia, the Republic of Korea, Turkey and Australia.

The Armed Forces: The Indonesian National Armed Forces number about 500,000 officers and soldiers. General Gatot Nurmantyo is the Commander of the Armed Forces. The country’s Armed Forces recruit contract soldiers and conscripts and are subdivided into the Army (326,000 officers and soldiers, commanded by General Mulyono), the Navy (67,000 officers and soldiers, commanded by Admiral Ade Supandi) and the Air Force (34,000 officers and soldiers, commanded by Air Marshal Hadi Tjahjanto). The 2016 and 2017 defence budgets totaled $7.5 billion and $9 billion, respectively.

Education: The country has 83 state and about 3,000 private universities with about 5 million students. Leading universities include the Bandung Institute of Technology (established in 1950, about 50,000 students) in Bandung and Gadjah Mada University in Yogyakarta.

Media: Over 80 central and provincial newspapers, as well as about 2,000 magazines, are published in Indonesia. Leading national newspapers include Kompas (since 1965, circulation 500,000 copies), Seputar Indonesia (since 2005, 300,000 copies), Media Indonesia (since 1970, circulation 250,000 copies), Suara Pembaruan (since 1987, circulation 100,000 copies), Koran Tempo (since 2001, circulation 100,000 copies), as well as the English language newspapers, The Jakarta Post (since 1983) and The Jakarta Globe (since 2008). The country has over 800 radio stations and several dozen television channels, including cable television channels.

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