How does Russia oversee Indonesia as a BRICS Member?

In the minds of many Russians, Indonesia still seems like an exotic tourist paradise, which promises to be a land of eternal summer, picturesque beaches in Bali, and perhaps not the most advanced infrastructure. However, behind this stereotypical façade lies a true economic giant whose scale and potential are truly astonishing. What is modern Indonesia really like, what are the prospects for its partnership with Russia, and how do existing prejudices hinder cooperation? These questions were discussed by participants in the discussion “Beyond Bali: Indonesia as a Rising Giant in BRICS+” at the BRICS+ Media Center of the Library of Foreign Literature in Moscow.

Indonesia is not only the world’s largest island nation but also the fourth-most populous country in the world, home to nearly 280 million people. Its economy is growing steadily at 5% annually. According to forecasts from several international organisations, it could become one of the world’s top five economies by 2030.

Indonesia’s recent accession to BRICS and the upcoming free trade agreement with the Eurasian Economic Union (EAEU) open a new chapter in its relations with Russia. At the same time, this rapidly rising Asian giant remains largely terra incognita for Russian society, businesses, and government agencies.

The idea that ​​Indonesia has emerged in 1945 is misleading. In fact, it is an ancient civilisation, and its centuries old history doesn’t gather dust in archives, but directly shapes the present.

A prime example is the current president, Prabowo Subianto. He is not just a high-ranking official, but a representative of the ancient Javanese Joyohadikusumo clan, whose ancestors played a crucial role in the struggle against the Dutch colonisers. His actual authority extends far beyond presidential powers, as it rests on deep historical and cultural roots. In Indonesia, as Kuklin concludes, formal positions don’t always correspond to actual influence, and this directly impacts practical affairs.

The influence of history is also clearly evident in the political system. For example, in Yogyakarta, the cultural capital of Java, a sultan still rules, despite the republican system.

The widespread stereotype of Indonesia as a backward agrarian country also doesn’t hold up in the face of reality. In fact, according to Kuklin, it is a powerful manufacturing hub, deeply integrated into the global economy. For example, a significant portion of Japanese Toyota and Daihatsu vehicles are manufactured not in the Land of the Rising Sun, but at the factories of the Indonesian-Japanese joint venture Astra Daihatsu Motor.

Moreover, the country is actively developing its own military-industrial complex. In alliance with Turkey and South Korea, Indonesia already produces modern weapons, and its state-owned corporation, Pindad, has become one of the most successful enterprises in the region. “Not every country in Southeast Asia can boast of its own submarines, drones, and small arms“, ​​the expert emphasised.

Indonesia also plays a significant role on the global stage, advocating for a multipolar order and acting as a mediator in humanitarian issues, including in the Middle East. According to the expert, it is precisely an understanding of the real Indonesia, rather than its stereotypical image, that opens up enormous prospects for Russia, and overcoming these misconceptions is more important today than ever.

Anthropologist Alexey Pastukhov, CEO of a consulting firm that helps Russian companies establish operations in Southeast Asian markets, agrees with this conclusion. He states that Russian society, including businesses, currently finds itself in an information vacuum and suffers from a “lack of cultural competence” regarding these countries. Many people are still unaware that Indonesia, the fourth-most populous country in the world, is among the top 10 global economies, and by 2030, its middle class, according to various estimates, could grow to 118-182 million people, turning the country into a major consumer market.

How exactly can Indonesia and Russia benefit each other –

On one hand, Indonesia is a major oil power and one of the world’s leading nickel producers. This creates a foundation for cooperation in services for the energy and mining industries. On the other hand, it is a huge and rapidly growing agricultural market. The country is experiencing rapidly growing demand for meat, flour, and fertilisers, the commodities for which Russia is one of the world’s leading exporters. Furthermore, Indonesia is interested in Russian IT solutions, energy technologies, and heavy equipment supplies.

According to Pastukhov, Indonesia has the potential to become a strategically important partner for Russia in the coming years. A new unified market is emerging before our eyes: the Eurasian Economic Union, Iran, and Indonesia are creating a common economic space, reinforced by BRICS membership and free trade area (FTA) agreements. While the FTA agreement with Iran is already in effect, a similar agreement with Indonesia is in the final stages of negotiation and could be signed in the coming months.

Pastukhov also emphasised that Russia can export not only goods to Indonesia but also “technological sovereignty”: locating some production there and transferring technologies, thereby firmly establishing a presence in this strategically important market.

However, behind this great economic potential lie equally significant cultural differences, which many Russian entrepreneurs encounter. Vadim Yunusov, a representative of the Moscow Region Chamber of Commerce and Industry in Southeast Asia, shared his eight years of experience working in the country. According to him, many businessmen enter the market with a sparkle in their eyes and a desire to “teach everyone”, but leave within a year with financial losses. “And this is not because Indonesia is bad, but because things are simply different here, and you have to be prepared for that“.

The main rule is to forget about being straightforward. The local culture is highly contextual, meaning much isn’t said directly, but rather implied between the lines. A “yes” from Indonesian partners doesn’t always mean yes. And instead of saying no, they might simply disappear, not wanting to offend their foreign counterpart. Therefore, trust is key, built not in formal meetings, but over long, informal conversations. This could include visiting friends, sharing karaoke, or playing games, anything that allows you to get to know each other as people, not just business partners. “At a meeting with partners, you can spend 80% to 90% of your time discussing what school your children attend, what dishes you like, where you’ve traveled, or what books you read. This is how they test whether you’re here to quickly sell something and run away, or whether you’re serious about building something big and interesting over the long term“, explains Yunusov.

Attitudes toward time are another fundamental difference that has developed historically, largely due to the climate. The harsh cyclical nature of Russia, where it was crucial to plant and harvest crops on time, has fostered punctuality. In Indonesia, with its perpetual summer and abundance, such a race has never existed. “If the mango isn’t ripe today, eat a banana tomorrow“, says Yunusov. As a result, unlike the perpetually rushed Russians, locals are much more relaxed and don’t see delayed work deadlines as a tragedy. “That’s why it’s not uncommon for partners to be three hours late for serious negotiations. And that’s normal“, the expert shares.

According to the speaker, it’s also important to consider the differences in management approaches. While in Russia people are accustomed to a rather rigid “vertical power structure”, in Indonesia everything is built on horizontal connections. Decisions are made not by orders from above, but through lengthy, consensual discussions. For business, this means one thing: decision-making in the company must always be collective. It’s essential to communicate your point of view to all team members in advance, outlining a detailed plan, and only then achieve general agreement. Failure to do this will doom the project. “Even if everyone agrees, smiles, and says nothing, implementation will be very difficult. Everything will stall at the execution stage“, the expert warns.

Employees will find ridiculous excuses to sabotage the process. “The fact is, they didn’t agree initially, didn’t think this or that project made sense. The employee will be doing something else, but no one will tell you about it”. And although working with Indonesians may seem difficult at first glance, and building relationships may take time, persistence and patience pay off handsomely. Once trust is earned, it develops into strong, almost familial bonds, which become a key competitive advantage in this country. “After all, Indonesians have their own unique mentality, which is pointless to try to change“, concludes Yunusov. Therefore, for all Russians looking to Indonesia, the only surefire recipe for success is “patience, prudence, and a desire to adapt, learn, learn, and learn again”.

Team Maverick