TEMPO.CO, Jakarta - The governments of Indonesia and Kazakhstan are committed to finalizing the Cooperation Agreement on Promotion and Mutual Protection of Investments between the two countries. The second round of discussions on this cooperation agreement was held in Bali on May 6-7, 2024.

The negotiation process for this cooperation agreement was attended by a delegation from the Kazakh government, namely the Ministry of Foreign Affairs, Ministry of Justice, Ministry of Trade and Integration, and the Investment Agency or Kazakh Invest. Meanwhile, the Indonesian government is represented by the Ministry of Foreign Affairs, the Ministry of Investment or the Investment Coordinating Board, and the Financial Services Authority (OJK).

This agreement, usually referred to as a Bilateral Investment Treaty (BIT), will play a role in providing legal protection and certainty for both Kazakh investors in Indonesia and Indonesian business actors who intend to invest in Kazakhstan.

The two countries plan to finalize this agreement in the first half of this year. The Indonesian Ambassador to Kazakhstan, Fadjroel Rachman, said that the governments of Indonesia and Kazakhstan were committed to completing the negotiation process soon.

"BIT will play a big role as a catalyst for increasing investment from Kazakhstan to potential and priority sectors in Indonesia and vice versa," said Fadjroel in a release received by Tempo.

Fadjroel stated that Kazakhstan has strong intentions to invest in Indonesia, especially in the Nusantara Capital City or IKN. “Kazakhstan smart mobility companies have launched pilot project investments in IKN and Balikpapan. In addition, BI Group, Kazakhstan's largest construction company, is exploring investment opportunities in IKN," he said.

To finalize the BIT discussions, the governments of Indonesia and Kazakhstan plan to continue the negotiation process in June 2024 via video conference.

MICHELLE GABRIELLA

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