Taking stock of Indonesia–Algeria cooperation in 2025

Just days before the end of 2025, Indonesia registered a new development in its relationship with Algeria when Pertamina Internasional EP, a unit of Indonesia’s state oil company, shipped one million barrels of Algerian crude to Jakarta from the Port of Arzew. Completed on 24 December, the delivery was the first lifting under a newly extended production-sharing contract that allows Indonesian operations in Algeria to continue for the next 25 years. The shipment took place against a backdrop of gradually expanding engagement between Southeast Asia’s largest democracy and North Africa’s most populous country.

The transaction followed a year in which interaction between the two countries became more frequent and structured, spanning energy cooperation, institutional exchanges, and trade promotion. While Indonesia–Algeria relations remain relatively narrow in economic terms, developments in 2025 point to an effort on both sides to stabilize and formalize areas of cooperation rather than pursue rapid expansion.

From Indonesia’s perspective, securing long-term crude supplies from Algeria fits within a broader strategy of reducing exposure to supply disruptions and price volatility by diversifying import sources. The partnership with Algeria’s state oil company, Sonatrach, builds on more than two decades of upstream cooperation, suggesting continuity rather than a shift in policy direction. For Algeria, the extension of the production-sharing contract for Block 405A ensures continued foreign participation in upstream activities at a time when maintaining production levels and attracting external capital remain policy priorities.

At the same time, the scale of the shipment and the overall volume of energy trade indicate a pragmatic relationship rather than a transformational one. Indonesian participation in NAPEC 2025, North Africa’s annual energy and hydrogen conference, reflects an interest in remaining visible in regional energy discussions, including those related to energy transition, without committing to large new initiatives.

READ: Indonesia’s classrooms are not sites for Zionist social engineering

Political and institutional engagement followed a similar pattern of incremental development. The November visit by Algeria’s Constitutional Court delegation to Jakarta to explore cooperation with Indonesia’s Constitutional Court marked a relatively uncommon judicial exchange. While largely symbolic, such interactions serve to broaden official contacts beyond executive branches and provide additional channels for dialogue.

Parliamentary engagement also featured during the year, with Algerian legislators attending the Parliamentary Union of the OIC Member States (PUIC) conference in Jakarta. Participation in such forums reinforces routine diplomatic contact, even though it does not, on its own, translate into policy coordination or binding commitments.

Economic engagement outside the energy sector remains limited. Indonesia’s participation in the Intra-African Trade Fair in Algiers was aimed at raising awareness of Indonesian products and exploring market access opportunities, while bilateral discussions focused on identifying sectors with trade and investment potential. However, distance, logistics, and differing regulatory environments continue to constrain growth in two-way trade.

Algeria’s position as a gateway to African markets is often cited in Indonesian outreach to the continent, though translating this geographic advantage into sustained commercial presence has proven challenging. Indonesia’s engagement with Algeria has unfolded alongside its broader participation in multilateral groupings such as the G20 and BRICS, where diversification of partnerships has been emphasized, but bilateral follow-through has generally remained cautious.

In international forums, Indonesia and Algeria have occasionally aligned on issues related to developing-country cooperation, reform of global economic governance, and trade. Both countries reference post-colonial experience in their diplomatic narratives, though this shared outlook has tended to inform positions rather than drive joint initiatives. Examples include Algeria’s engagement with ASEAN’s Treaty of Amity and Cooperation and Indonesia’s support for greater African participation in G20 discussions.

Despite increased activity in 2025, the relationship remains constrained by scale and capacity. Trade volumes are modest compared with Indonesia’s major economic partners, and cooperation is concentrated in a limited number of sectors. The pattern that emerges is one of steady, interest-driven engagement rather than strategic alignment.

The crude shipment at the end of the year illustrates this dynamic. It reflects continuity in energy cooperation and a willingness to maintain diversified partnerships, but it does not signal a broader realignment. Instead, Indonesia–Algeria relations appear set to continue evolving incrementally, shaped by practical considerations and measured expectations rather than expansive ambition.

READ: Why Indonesia’s two-state stance works in Israel’s favour

The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.