Heres why Argentina should pursue deeper ties with Indonesia

In 2026, Argentina and Indonesia mark 70 years of diplomatic relations, established on 30 July 1956 — and it’s a timely milestone to reassess a partnership that has grown in strategic relevance.  As Indonesia has moved from a rice-centered agrarian economy to a globally-engaged G20 middle power over the last five decades, the anniversary underscores why it is becoming a necessary partner for Argentina’s diversification toward Southeast Asia in an increasingly fragmented world. With a population of over 280 million people, Indonesia is the fourth most populous country in the world, and Southeast Asia’s largest consumer market. Today, it is also the world’s 16th largest economy, growing at around 5% annually in 2024–2025, showing resilience despite global volatility.  The shift is stark: in the 1970s, agriculture made up over 40% of GDP and employed nearly two-thirds of the workforce. With industrialisation, urbanisation and services, agriculture fell to around 12% of GDP, as labor moved into higher-productivity activities. Recent research by the Institute for Economic and Social Research (LPEM FEB UI) at the University of Indonesia documents how Indonesia steadily moved from heavy rice dependence toward a more diversified agrifood and industrial system, arguing this was not merely an economic pivot but a political and institutional shift to reduce vulnerability, ease fiscal pressures, and create space for higher value-added activities. This trajectory was anticipated by development economist Soemitro Djojohadikoesoemo, father of Indonesia’s current President Prabowo Subianto, who warned in the 1970s that dependence on a single staple risked a structural trap and that diversification was vital for stability, inflation control, and long-term development.  Tthough controversial then, Indonesia’s shift away from monocrop dependence later boosted productivity and fiscal flexibility, and LPEM FEB UI stresses that “escaping the rice trap” required political will, not just technical fixes. More recently, economists such as Gita Wirjawan have stressed that Indonesia’s success rests on pragmatism: blending market mechanisms with strategic state intervention, openness with domestic capacity-building, and growth with stability. This approach has produced a diversified economy, with active sectors ranging from manufacturing and energy to natural resources, digital services, and infrastructure. This provides a key foundation for Indonesia’s emergence as a middle power. Indonesia’s foreign policy pragmatism Indonesia’s economic rise is tightly linked to a foreign policy that treats diplomacy as a tool for national development. Building on the vision advanced by ministers such as Marty Natalegawa and Retno Marsudi, Indonesia has promoted a pragmatic, “down-to-earth and people-centred” approach in which foreign policy should deliver tangible benefits at home while supporting regional and global stability — an orientation that has underpinned its push for economic diplomacy, investment attraction, and trade cooperation, especially across Asia. At the systemic level, Indonesia positions itself as a bridge-builder: its participation in forums such as the G20 reflects a commitment to dialogue, inclusiveness, and a rules-based order, while — echoing Natalegawa’s view — it rejects binary choices between competing powers in favor of strategic flexibility and autonomous decision-making.  In doing so, Indonesia exemplifies a middle-power diplomacy well suited to today’s fragmented global order: regionally anchored, globally engaged, and guided by long-term national interests rather than short-term alignments. Why Indonesia matters for Argentina now Seventy years after the establishment of diplomatic relations, Argentina and Indonesia maintain a cordial but underdeveloped partnership. This anniversary should therefore serve less as a ceremonial milestone and more as a strategic reminder: the bilateral relationship remains largely untapped. From an economic perspective, Indonesia represents a natural partner for Argentina. In fact, bilateral trade already shows a solid foundation: in 2024, the trade balance between Argentina and Indonesia reached US$1.7 billion, according to Argentina’s National Institute of Statistics and Censuses (INDEC). This highlights both the depth of current ties and the potential to move beyond trade toward a more diversified, strategic partnership.  Within ASEAN, Indonesia is consistently among Argentina’s top trading partners, often ranking second or third alongside Vietnam and Malaysia. It also remains one of Argentina’s most important Asian markets due to its scale and growth prospects. Agri-food (including halal-certified products), energy, strategic minerals, logistics, and knowledge-based services offer clear complementarities: Indonesia needs reliable suppliers to strengthen food security and industrial expansion, while Argentina seeks dynamic markets beyond its traditional partners. Politically, closer ties would link Argentina to a respected middle power with regional leadership and rising global credibility, broadening diplomatic options and reducing dependence on a narrow set of actors in an increasingly uncertain world.  Marking seventy years of relations should therefore be less about nostalgia and more about launching a new phase of strategic, pragmatic cooperation: Indonesia is not just a distant Asian economy, but a necessary partner for Argentina in a changing global order. Cover image: Gamelan players and a dancer in Bali, Indonesia. Photo: Andika Panendra via Wikimedia Commons, License: Attribution-Share Alike 4.0