Inbizzy, Jakarta, — The governments of Indonesia and Saudi Arabia have signed a series of investment agreements and memorandums of understanding (MoUs) worth a total of approximately US$27 billion (around IDR 437 trillion). The strategic collaboration spans key sectors including clean energy, petrochemicals, aviation fuel services, healthcare, pharmaceuticals, and medical technology.
The announcement came during a high-level bilateral meeting between Indonesian President Prabowo Subianto and Saudi Crown Prince Mohammed bin Salman in Riyadh. The visit also marked the official establishment of the Indonesia–Saudi Arabia High-Level Coordination Council, aimed at accelerating joint economic and investment cooperation.
“We welcome this historic step as a solid foundation for long-term collaboration between Indonesia and Saudi Arabia,” President Prabowo said, as quoted by Reuters.
Key Investment Areas
The signed agreements cover a wide range of projects, including:
- Clean Energy and Petrochemicals
Saudi energy company ACWA Power will partner with Indonesia’s Pertamina and Danantara to invest in renewable energy development. Initial projects include solar and wind power generation with a planned capacity of up to 500 megawatts.
The cooperation also involves downstream oil and petrochemical projects to support Indonesia’s energy transition goals.
- Aviation Fuel Services
Pertamina subsidiary Patra Niaga has entered into a partnership with Saudi companies to expand jet fuel services across Southeast Asia, enhancing aviation connectivity and fuel distribution networks.
- Healthcare and Medical Technology
The two countries have agreed to collaborate in the development of health services, pharmaceutical manufacturing, medical technology, and digital health infrastructure. These efforts will also support health services for Hajj and Umrah pilgrims.
Strengthening Bilateral Economic Relations
According to Indonesia’s Ministry of Investment, bilateral trade between Indonesia and Saudi Arabia has exceeded US$31.5 billion over the past five years. Saudi Arabia is one of Indonesia’s main trading partners in the Middle East and a key source of foreign investment.
The agreements align with both nations’ long-term visions — Saudi Arabia’s Vision 2030 and Indonesia’s Golden Vision 2045 — which emphasize economic diversification, sustainable development, and innovation in public services and industry.
“This investment is not just about figures — it reflects a shared commitment to a green, inclusive, and resilient economic future,” said Indonesia’s Minister of Investment Bahlil Lahadalia, as reported by Kompas.
Implementation and Future Cooperation
To ensure timely and effective implementation, both governments have agreed to establish a joint task force under the newly formed High-Level Coordination Council. This task force will oversee the execution of agreed projects and facilitate future cooperation in defense, cybersecurity, education, and digital economy sectors.
Additionally, Indonesia is pushing for the accelerated negotiation of a Free Trade Agreement (FTA) between Indonesia and the Gulf Cooperation Council (GCC), which is expected to be finalized soon following successful rounds of negotiations in late 2024 and early 2025.
