Saudi Arabia and Indonesia Sign Deals worth $27 Billion

Reflecting their aspirations for an advanced economic partnership, Indonesia and Saudi Arabia have agreed to invest $27 billion in various fields, including clean energy, petrochemicals, and aviation fuel services with private sector institutions in both countries.

The investments were formalised during a bilateral meeting held between Indonesian President Prabowo Subianto and H R H Crown Prince and Prime Minister of Saudi Arabia Mohammed bin Salman bin Abdulaziz Al Saud at Al-Salam Palace, Jeddah, Saudi Arabia.

The Indonesian President has been on a two-day state visit to the Kingdom, which concluded on Thursday. After the meeting, the two leaders welcomed the signing of a number of agreements and memoranda of understanding (MOUs) signed during the visit.

The two leaders expressed their shared aspirations to strengthen strategic cooperation in the health sector, particularly concerning the implementation of health requirements for Hajj and Umrah. They also committed to supporting investment in the pharmaceutical, vaccine, health technology industry, and human resource development sectors.

In addition, both countries emphasised the importance of strengthening partnerships in various other strategic sectors such as digital economy, justice system, employment, culture, tourism, youth and sports, education and scientific research, industry and mining, agriculture, fisheries and food security, as well as improving flight connectivity.

Cooperation on Security

In the defence and security sector, the leaders agreed to deepen cooperation to serve mutual interests and contribute to regional and global stability. The main focus encompasses cooperation on counterterrorism, combating extremism, cybersecurity, and the exchange of information and training.

Both sides affirmed their commitment to strengthening joint security cooperation and coordination on shared concerns, including eradicating all forms of crime, terrorism, and extremism and their financing, as well as strengthening cooperation in cybersecurity and the exchange of information, expertise, and training.

Both countries further underscored the importance of cooperation in multilateral forums, such as the International Monetary Fund (IMF), World Bank, Organisation of Islamic Cooperation (OIC), G20, and the Non-Aligned Movement, to address global challenges and advocate for common interests.

Bilateral Trade

They also lauded the level of bilateral trade, which amounted to about $31.5 billion in the past five years, making the Kingdom the top trading partner of Indonesia in the region.

The two sides stressed the importance of continuing joint action to develop the volume of trade exchange, intensifying mutual visits between officials in public and private sectors, and holding trade events between the two countries through Saudi-Indonesian Business Council, in order to explore promising opportunities and turn them into tangible partnerships.

They also welcomed the positive outcomes of the negotiations for a Free Trade Agreement (FTA) between the Gulf Cooperation Council (GCC) countries and Indonesia, which were held in September 2024 and February 2025, and expressed their hope to conclude the agreement in the near future.