Indonesia and Russia Sign MoU to Boost Palm Oil, Biodiesel Cooperation at INNOPROM 2026
Indonesia's BPDP backed a new MoU between GAPKI and Russian fat-and-oil industry groups at INNOPROM 2026 in Yekaterinburg, aiming to expand palm oil trade and promote the B50 biodiesel program. The deal builds on Indonesia's 2025 Strategic Partnership with Russia and a pending Indonesia-EAEU free trade agreement set to take effect in 2027.
MoU Signed in Moscow
Indonesia's Palm Oil Fund Management Agency (BPDP) backed the signing of a memorandum of understanding between the Indonesian Palm Oil Association (GAPKI) and Russia's Fat and Oil Union, along with the Association of Enterprises of the Fat and Oil Industry of the Eurasian Economic Union (EAEU), aimed at strengthening palm oil cooperation between Indonesia and Russia.
The MoU was signed at the Indonesian Embassy in Moscow by GAPKI Chairman Eddy Martono and representatives of the Russian fat and oil industry organizations. The signing was witnessed by BPDP's Director of Legal Affairs and Cooperation, Pangihutan Siagian, and Indonesia's Ambassador to Russia and Belarus, H.E. Jose Tavares.
The agreement follows BPDP's participation as a co-exhibitor at INNOPROM 2026, an international industrial trade fair held in Yekaterinburg, Russia.
B50 Biodiesel and Downstream Investment Pitch
At INNOPROM 2026, BPDP took part as a speaker in an international business forum focused on sustainable palm oil financing and the development of Indonesia's biodiesel sector. The agency presented Indonesia's palm oil industry progress, including downstream processing, research and innovation, implementation of the B50 biodiesel program, and investment and cooperation opportunities in the sector.
Pangihutan Siagian said the cooperation marks an important moment to expand Indonesia's international partnership network and open larger market opportunities for Indonesian palm oil products. He said BPDP welcomes the partnership as an effort to strengthen the position of Indonesia's palm oil industry in the global market, with the collaboration expected to boost information exchange, promotion, and mutually beneficial cooperation between businesses in both countries.
Strategic Partnership and Pending Free Trade Deal
The MoU is intended to serve as a foundation for further cooperation, including information exchange, trade promotion, capacity building, development of industry standards, and expanded market access for Indonesian palm oil products in Russia and other EAEU member states.
Ambassador Jose Tavares said he hopes the MoU will be implemented concretely so it benefits all parties and contributes to stronger trade relations between Indonesia and both Russia and the EAEU member countries. He reaffirmed the Indonesian Embassy in Moscow's commitment to supporting initiatives that strengthen economic ties between the two countries.
The cooperation comes as Indonesia-Russia relations have grown closer: bilateral ties were elevated to a Strategic Partnership in 2025, while an Indonesia-EAEU Free Trade Agreement signed in late 2025 is expected to begin implementation in 2027. BPDP said this momentum is expected to further open opportunities for increased trade, including in palm oil and its derivative products.
Domestic Debate Over B50
The push to promote B50 abroad comes amid domestic criticism of the program. The Union of Indonesian Oil Palm Smallholders (SPKS) has said the B50 biodiesel mandate is costing palm oil farmers Rp500 billion per month, highlighting tension between the government's downstream biodiesel strategy and farmer income.
