Indonesian state-owned enterprises (SOEs) are preparing to investigate investment opportunities in the non-traditional markets of Central and South Asia at the upcoming 2024 Indonesia-South and Central Asia (INASCA) Business Forum in Jakarta. The Indonesian government will host the event, bringing together hundreds of companies from Indonesia and the two regions for discussions on potential business collaborations.
Abdul Kadir Jaelani, a director-general at the Foreign Affairs Ministry, stated that Indonesia has not yet fully tapped into the largely untapped markets of Central and South Asia, which is why the forum will focus on this area. He noted that Indonesia has not established a specific monetary target for the deals to be achieved at this annual business gathering, but securing investment deals will be a top priority on the agenda.
“We are aware that Indonesia is not only an investment destination but also a capital-exporting country. South Asia and Central Asia hold quite large potential and we can see our SOEs potentially playing a role in these regions”, Kadir told the press in Jakarta. Kadir also revealed that the state-run oil and gas firm Pertamina would be among the SOE attendees.
Pertamina already has some past interactions with these two regions. In South Asia, Pertamina’s gas subholding PGN inked a memorandum of understanding (MoU) with Intraco in 2022. The deal covers the development of liquefied natural gas (LNG) and natural gas infrastructure in Bangladesh.
In 2012, Pertamina considered acquiring oil and gas blocks in Kazakhstan. The company announced its plans during a visit to Jakarta by then-President Nursultan Nazarbayev of Kazakhstan. At that time, Pertamina indicated that the potential output from the acquisition could reach up to 50,000 barrels per day, according to media reports.
Indonesia, which is about to undergo a presidential transition, has recently been proactive in exploring non-traditional markets. Earlier this month, the Southeast Asian nation hosted the Indonesia-Africa Forum, which resulted in 32 business deals totaling $3.5 billion.