- Indonesia and Turkey discuss shipbuilding and energy for Batam's growth.
- Turkish ceramics support Indonesia’s affordable homes and construction material supply.
- Agricultural machinery collaboration strengthens food security and local content goals.
Indonesia’s Industry Minister Agus Gumiwang Kartasasmita held discussions with prominent Turkish firms in Istanbul to seek enhanced manufacturing collaborations, draw in foreign investment, and further incorporate Indonesia into global supply chains.
“This meeting is an important first step to build a strategic roadmap for industrial growth between Indonesia and Turkey,” Kartasasmita said in a statement from Jakarta.
He informed a group from Karadeniz Holding, which specializes in energy and logistics that Turkey has expressed interest in shipbuilding and energy initiatives especially in Batam, where the need for industry and data centers is increasing. Karadeniz is recognized for its shipbuilding and powership activities.
Discussions with Kale Group, Turkey's leading ceramics and building materials firm, focused on Indonesia's initiative to construct three million affordable homes — a project anticipated to need significant amounts of ceramic materials. Kale is also interested in the defense and aerospace industries of Turkey.
Kartasasmita conversed with Erisler, a Turkish food exporter currently supplying wheat flour for animal feed to Indonesia, to discuss potential growth into processed foods as part of Indonesia’s food security initiatives.
During discussions with Tumosan, a producer of tractors and diesel engines, Kartasasmita expressed that the alignment with President Prabowo Subianto’s food security initiative was evident. Tumosan, having prior experience in Africa and Asia, indicated the possibility of setting up production facilities in Indonesia if there is sufficient demand.
“Turkish industry wants market guarantees if they produce in Indonesia,” Kartasasmita said.
“We will provide certainty through a 40 percent local content requirement, ensuring agricultural machinery can be absorbed by the domestic market,” he added.
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The minister stated that Indonesia seeks not just to draw investment but also to function as a regional distribution center for Turkish industrial goods, emphasizing its position as a significant Asian economy and its trade agreements with countries such as Australia.
He mentioned that collaborations with Turkish companies would provide three main advantages: foreign direct investment, the transfer of technology and research, and greater involvement of Indonesian manufacturers in global supply chains.
“With new production facilities, Indonesia will become more competitive, create jobs, and gain wider access to international markets,” Kartasasmita said, noting the government is ready to offer attractive incentives for Turkish investors.