Indonesia, Switzerland Sign Minerals Cooperation Pact to Boost Downstream Investment
Jakarta, The Gulf Observer: Indonesia and Switzerland have signed a Memorandum of Understanding (MoU) on cooperation in the minerals and metals sector, marking a significant step toward strengthening downstream investment, industrial collaboration, and sustainable economic development between the two countries.
Indonesia’s Minister of Investment and Downstreaming, Rosan Roeslani, said the agreement completes the signing process initiated by Swiss President Guy Parmelin during the Swissmem Industry Day 2026 held in Basel on June 23.
In a statement, Rosan described the MoU as a milestone in bilateral relations, emphasizing that it will promote sustainable downstream investment while supporting Indonesia’s long-term industrial transformation.
He noted that Indonesia’s abundant mineral resources offer significant opportunities to generate greater value-added products, create high-quality employment, and enhance the country’s industrial competitiveness through domestic downstream processing. Switzerland, he said, brings valuable expertise in technology, innovation, financing, logistics, and access to global markets.
Rosan added that the partnership aligns with Indonesia’s national strategy of expanding domestic processing and manufacturing of strategic mineral resources, particularly for industries related to electric vehicle (EV) batteries, renewable energy, and other green technologies.
Swiss Ambassador to Indonesia, Timor-Leste and ASEAN, Olivier Zehnder, said the agreement provides a stronger framework for complementary cooperation in the minerals and metals sector and reflects the growing strategic partnership between the two countries.
He highlighted that the signing coincides with the 75th anniversary of diplomatic relations between Indonesia and Switzerland in 2026 and expressed confidence that the new partnership would further deepen bilateral economic ties while delivering sustainable benefits for both nations.
The cooperation framework covers a broad range of areas, including investment promotion, sustainable mineral and metals supply chains, technology and knowledge transfer, workforce development, and the implementation of Environmental, Social and Governance (ESG) standards.
It also provides for collaboration in clean technology development, strengthening governance in downstream industries, and organizing business missions, seminars, exhibitions, training programs, and business-matching initiatives to encourage greater private-sector engagement.
According to official data, Swiss investment in Indonesia reached approximately US$1.33 billion between 2021 and the first quarter of 2026, with major investments concentrated in the food industry, transportation and warehousing, telecommunications, and chemical and pharmaceutical sectors.
The two countries have also strengthened their economic partnership under the Indonesia–European Free Trade Association Comprehensive Economic Partnership Agreement (IE-CEPA), which aims to improve the business climate, enhance investment certainty, and facilitate greater bilateral trade and investment.
