Indonesia, the world’s largest Muslim country, has had cordial relations with Muslim-majority Kazakhstan for almost two decades. However, these relations have been effective only in the political and international spheres, leaving vital areas of trade, investment and culture untouched.

After the collapse of the Soviet Union in 1991, Indonesia recognized the independence of Kazakhstan and established diplomatic relations in 1993. Both countries recognized their geostrategic importance and exchanged high level visits in 1995, but since then, for unknown reasons, both countries neglected each other.

Only recently have Indonesia and Kazakhstan realized their mistake. In 2010, Indonesia opened its embassy in Astana to place bilateral ties on a high trajectory. In response, Kazakhstan President Nursultan Nazarbayev visited Indonesia in April this year to revitalize the stagnant relations, with Kazakhstan opening its embassy in Jakarta in September.

“Kazakhstan attaches great importance to our relations with Indonesia, which is a key member of ASEAN. Being the leading countries in our respective regions, both Indonesia and Kazakhstan must cooperate closely,” Kazakhstan Ambassador to Indonesia Askhat T. Orazbay told The Jakarta Post.

One may ask what is the main attraction of Kazakhstan?

“Kazakhstan offers many opportunities for Indonesia,” Ambassador Orazbay said.

Indonesia exported US$8.16 million — mainly palm oil, animal fats, paper and electronic equipment — to Astana in 2011 and imported $25 million — mainly steel products — from there. In the first nine months of this year, bilateral trade surged to $42.89 million, a huge increase of 59.8 percent from $26.83 million during the same period in 2011.

Covering an area of 2.7 million square kilometers with 16.8 million people, Kazakhstan is one of the largest countries in the world and an important producer of oil in Central Asia. “We have huge reserves of oil and gas,” Orazbay said.

According to estimates of oil giant BP, Kazakhstan has some 30 billion barrels of proven oil reserves, almost 10 times that of Indonesia. With 1.6 million barrels of oil per day, it is the world’s 18th largest producer of oil.

“We have world’s biggest oil field — Kashagan — which will make us one of the top 10 oil producers by 2020. It will start production next year,” Orazbay said.

Located in the Caspian Sea, Kashagan oil field has some 13 billion barrels of recoverable oil. Kazakhstan is one of the few countries in the world that benefited from the oil boom, which made the country a high-level middle income country with GDP per capita reaching $11,000 last year. A decade ago, Kazakhstan’s GDP per capita was just $700.

Kazakhstan is also the world’s biggest producer of uranium, chrome, phosphate, lead, molybdenum, gold, coal and iron. According to one estimate, the nation’s mineral wealth value — both proven and unproven — could reach $46 trillion.

In 2002, Kazakhstan received an investment grade and has so far attracted $160 billion in foreign direct investment in two decades.

Then in January 2010, Astana joined the Belarus-Kazakhstan-Russia Customs Union, which allows the free flow of goods within the three countries without any customs duties. Next year, Kazakhstan will join the World Trade Organization.

Indonesian companies such as PT Multistrada, PT Indofarma and Indofood, according to Orazbay, are now looking at Kazakhstan to explore opportunities in energy, food, tires and medicines. Indonesian state oil company PT Pertamina is also showing interest in buying oil from Kazakhstan.

Orazbay said that Kazakhstan may also look to investing in Indonesia.Indonesia, the world’s largest Muslim country, has had cordial relations with Muslim-majority Kazakhstan for almost two decades. However, these relations have been effective only in the political and international spheres, leaving vital areas of trade, investment and culture untouched.

After the collapse of the Soviet Union in 1991, Indonesia recognized the independence of Kazakhstan and established diplomatic relations in 1993. Both countries recognized their geostrategic importance and exchanged high level visits in 1995, but since then, for unknown reasons, both countries neglected each other.

Only recently have Indonesia and Kazakhstan realized their mistake. In 2010, Indonesia opened its embassy in Astana to place bilateral ties on a high trajectory. In response, Kazakhstan President Nursultan Nazarbayev visited Indonesia in April this year to revitalize the stagnant relations, with Kazakhstan opening its embassy in Jakarta in September.

“Kazakhstan attaches great importance to our relations with Indonesia, which is a key member of ASEAN. Being the leading countries in our respective regions, both Indonesia and Kazakhstan must cooperate closely,” Kazakhstan Ambassador to Indonesia Askhat T. Orazbay told The Jakarta Post.

One may ask what is the main attraction of Kazakhstan?

“Kazakhstan offers many opportunities for Indonesia,” Ambassador Orazbay said.

Indonesia exported US$8.16 million — mainly palm oil, animal fats, paper and electronic equipment — to Astana in 2011 and imported $25 million — mainly steel products — from there. In the first nine months of this year, bilateral trade surged to $42.89 million, a huge increase of 59.8 percent from $26.83 million during the same period in 2011.

Covering an area of 2.7 million square kilometers with 16.8 million people, Kazakhstan is one of the largest countries in the world and an important producer of oil in Central Asia. “We have huge reserves of oil and gas,” Orazbay said.

According to estimates of oil giant BP, Kazakhstan has some 30 billion barrels of proven oil reserves, almost 10 times that of Indonesia. With 1.6 million barrels of oil per day, it is the world’s 18th largest producer of oil.

“We have world’s biggest oil field — Kashagan — which will make us one of the top 10 oil producers by 2020. It will start production next year,” Orazbay said.

Located in the Caspian Sea, Kashagan oil field has some 13 billion barrels of recoverable oil. Kazakhstan is one of the few countries in the world that benefited from the oil boom, which made the country a high-level middle income country with GDP per capita reaching $11,000 last year. A decade ago, Kazakhstan’s GDP per capita was just $700.

Kazakhstan is also the world’s biggest producer of uranium, chrome, phosphate, lead, molybdenum, gold, coal and iron. According to one estimate, the nation’s mineral wealth value — both proven and unproven — could reach $46 trillion.

In 2002, Kazakhstan received an investment grade and has so far attracted $160 billion in foreign direct investment in two decades.

Then in January 2010, Astana joined the Belarus-Kazakhstan-Russia Customs Union, which allows the free flow of goods within the three countries without any customs duties. Next year, Kazakhstan will join the World Trade Organization.

Indonesian companies such as PT Multistrada, PT Indofarma and Indofood, according to Orazbay, are now looking at Kazakhstan to explore opportunities in energy, food, tires and medicines. Indonesian state oil company PT Pertamina is also showing interest in buying oil from Kazakhstan.

Orazbay said that Kazakhstan may also look to investing in Indonesia.

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