Indonesia Partners with Russia's Sistema Group on Electric Shipbuilding, Pharma Projects

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November 20, 2025 | 05:21 pm

TEMPO.CO, Jakarta - Indonesia is exploring potential partnerships with Russia’s Sistema Group to develop pharmaceutical capabilities and build electric passenger ships, government officials said on Thursday.

President Prabowo Subianto met with Sistema Group’s CEO and board members, alongside Russian Ambassador to Indonesia Sergei Gennadievich Tolchenov, at the Presidential Palace in Jakarta on November 20, 2025.

The talks follow an earlier meeting between Indonesian officials and the Russian conglomerate in Saint Petersburg.

“This collaboration will begin with healthcare,” said Rosan Roeslani, CEO of state's investment management agency Danantara and one of President Prabowo’s aides, after the meeting.

Rosan noted that Sistema Group is Russia’s largest hospital operator, managing around 160 hospitals. The conglomerate also has a major presence in pharmaceuticals and is one of Russia’s largest patent holders for medical products.

“They have met with Biofarma and Kimia Farma in Bandung, and discussions will now move to the next stage,” Rosan said.

The government is also seeking cooperation on shipbuilding. Rosan said Sistema, described as Russia’s largest shipyard operator, is preparing plans to build electric passenger vessels in Indonesia. The proposed ships would carry around 100 passengers and be used for inter-island transport.

“Discussions have already begun, and they intend to set up a manufacturing facility here,” he said, adding that Indonesian companies such as PT PAL may take part in the project.

Further cooperation is also being explored in the hospitality sector and in the development of Russian language education programs in Indonesia.

Rosan expressed hope that the partnership, particularly in pharmaceuticals, could help reduce Indonesia’s relatively high drug prices compared to other countries. He did not disclose the potential value of the agreements under discussion.

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