RI-Belarus Encourage Cooperation in Heavy Equipment Industry and Food Security

JAKARTA - In the midst of global dynamics, Indonesia needs to continue to expand opportunities for cooperation based on common interests through various international trade schemes, one of which is through the Indonesia-Eurasian Economic Union Free Trade Agreement (Indonesia-EAEU FTA).

To maximize the implementation of this cooperation, Indonesia not only needs to open market access for national export products in the Eurasian region, but also identify strategic commodities needed domestically and become industry leaders in the region, especially Belarus.

In the series of the 8th RI-Belarus Joint Commission Meeting (SKB) in the fields of trade, economy, and engineering, Coordinating Minister for the Economy Airlangga Hartarto fulfilled the invitation of the Deputy Prime Minister of the Republic of Belarus by visiting a number of strategic industries in Minsk, Belarus, on Thursday, May 14. The visit was also accompanied by the Deputy Minister of Industry of the Republic of Belarus, Leonid Ryzkovsk

The agenda of the visit includes the Minsk Tractor Works (MTZ), MAZ (Minsk Automobile Plant), and BelAZ Holding Management Company.

The three companies are the backbone of Belarus' manufacturing industry, which is known for its excellence in the production of heavy equipment, commercial vehicles, and modern agricultural mechanization technology.

This exploration of cooperation is in line with one of the President's Cita Asta, namely strengthening national food security through the modernization of the agricultural sector and the provision of efficient heavy equipment.

Belarus itself has a strong manufacturing sector with a contribution of around 20.3 percent to the national GDP in 2024 and the country is also known to be advanced in the development of agro-industry and agricultural mechanization which supports the level of food self-sufficiency to around 96 percent.

When visiting MTZ, Airlangga reviewed the development of tractor and agricultural machinery technology which was considered to have the potential to support Indonesia's food security and agricultural modernization programs, including the development of food estates and increasing productivity in the agricultural sector.

MTZ said that its heavy equipment and production machines can be adjusted to user needs, and the company also offers training programs and technology transfer as part of the potential for cooperation. Initial discussions regarding heavy equipment industry collaboration have also been carried out with KADIN.

Meanwhile, the visit to MAZ focused on the opportunity for cooperation in the development of commercial vehicles, buses, and special industrial vehicles, including the possibility of local assembly, technology transfer, to the development of low-emission vehicles.

At BelAZ Holding Company, both parties discussed the potential for cooperation in the mining equipment sector, ranging from the development of a maintenance ecosystem, local assembly, to opportunities to strengthen the supply chain of natural rubber-based heavy vehicle tires from Indonesia.

"We see that Belarusian companies are experienced in producing various types of heavy equipment products, especially those that can strengthen industrialization, modern agricultural mechanization, and the development of the heavy equipment industry in Indonesia," said Airlangga in his statement, Friday, May 15.

In the continuation of the discussion, the development of cassava into ethanol and the study of the use of nickel batteries to support agricultural modernization were also discussed.

In the mining sector, the use of nickel batteries in heavy vehicles has been implemented to increase the efficiency, sustainability, and operational performance of the mining industry.

In addition, Indonesia itself exports around 800 million tons of coal every year, so the need for efficient and environmentally friendly mining dump trucks is a major concern.

The Belarusian government has been studying the need for heavy equipment in Indonesia, but information on specific needs is still considered limited.

Therefore, it is necessary to map the common needs, regular consultation forums, and strengthening communication between industry players and the governments of both countries so that the solutions offered are truly in line with the needs on the ground.

The visit to the three main industries of Belarus is expected to strengthen the follow-up to the 8th RI-Belarus SKB results as well as a strategic step in preparing a plan for the Belarusian President's visit to Indonesia in the future.