Indonesia, Finland Agree to Bolster Economic Cooperation

TEMPO.CO, Jakarta - Indonesian Foreign Minister Sugiono had a bilateral meeting with ’s Foreign Minister Elina Valtonen on the sidelines of the World Economic Forum (WEF) Annual Meeting 2025 in Davos-Klosters, Switzerland, on January 22, 2025, marking the first meeting between the two. 

“I welcome Finland's support to strengthen economic cooperation with Indonesia, including for the conclusion of Indonesia's Free Trade Agreement (FTA) negotiations with the European Union,” Foreign Minister Sugiono said.

During the meeting, Sugiono expressed hope to bolster the partnership between Indonesia and Finland, especially in the economic, health, digital infrastructure, and energy sectors. 

Sugiono also welcomed Finland's goal to foster ties with , including finalizing Finland’s accession to the Treaty of Amity and Cooperation in Southeast Asia (TAC).

The bilateral meeting also discussed global developments, including the situation in Ukraine. Foreign Minister Valtonen expressed Finland's concern over the lasting war in Ukraine while explaining the country’s efforts in promoting peace in Ukraine. Finland is the chair of the Organization for Security and Co-operation in Europe (OSCE) this year.

To Valtonen, Minister Sugiono asked for Finland’s support for achieving the two-state solution and lasting peace in Palestine. He also emphasized the importance of rebuilding Gaza and support for UNRWA. Sugiono expressed his appreciation for Finland's support for Indonesia’s quest to obtain OECD membership. 

Earlier last year, the Ministry of Public Works announced plans to cooperate with Finland to develop infrastructure in the New Nusantara Capital (). The cooperation can be carried out through funding schemes such as loans or B2B funding.

Deputy Minister of Public Works, Diana Kusumastuti, stated that the infrastructure to be developed includes smart water and smart transportation, irrigation and reservoirs, fire protection, drainage, as well as national roads and toll roads.

Diana explained that previously, there has been a lot of collaboration between Indonesia and Finland. In the smart construction sector, for example, there has been cooperation on smart building systems and waste management systems.

Indonesia-Finland cooperation in the infrastructure sector began with the visit of the Finnish Minister of Economy in January 2024 at the Ministry of Public Works. The visit gave valuable insights into Finland's expertise in digitalization, said Diana.

The Finnish government is pleased to be able to contribute to the construction sector in Indonesia and hopes that this contribution can be improved in the future. Indonesia and Finland are partners who collaborate on various bilateral and multilateral cooperation. The two countries commemorate 70 years of diplomatic relations in 2024. 

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