Indonesia, Saudi Arabia Agree to Strengthen Strategic Partnership in Economy, Investment, Energy
Photo caption: President Prabowo Subianto has a bilateral meeting with Crown Prince/PM of the Kingdom of Saudi Arabia Prince Mohammed bin Salman bin Abdulaziz Al Saud (MBS) at Al-Salam Palace, Jeddah, Wednesday (07/2). (Photo: BPMI of Presidential Secretariat)
President Prabowo Subianto and Crown Prince who also serves as PM of the Kingdom of Saudi Arabia (KSA) Prince Mohammed bin Salman bin Abdulaziz Al Saud (MBS) agreed to strengthen strategic partnership in economy, investment, and energy during a bilateral meeting at Al-Salam Palace, Jeddah, Wednesday (07/2). This agreement was made public in the joint press conference.
The two leaders highlighted the strong bilateral economic relationship that has been established and emphasized the importance of enhancing cooperation in priority sectors. In the last five years, the trade value between the two countries reached US$31,5 trillion, establishing Saudi Arabia as Indonesia’s main trade partner in the region. President Prabowo and Prince MBS agreed to seize the opportunities offered by Saudi Arabia 2030 and Golden Indonesia 2045 visions, to strengthen cross-sector cooperation and advance the economic transformation in each country.
Both Parties agree to strengthen cooperation, particularly in priority sectors, support partnerships with private sectors from both countries, and seize the opportunities offered by Saudi Arabia 2030 and Golden Indonesia 2045 visions, according to the joint statement.
In the trade sector, the two leaders emphasized the importance of increasing the trade volume, the number of official visits by high-ranking officials from public and private sectors, and the number of business forums held periodically through the Saudi-Indonesian Business Council. Both parties also expressed appreciation for the positive outcomes of the negotiations on the free trade agreement between Indonesia and the Gulf Cooperation Council (GCC) countries, which took place from September 2024 to February 2025, and encouraged the rapid completion of the agreement.
In the energy sector, President Prabowo expressed his appreciation for Saudi Arabia’s central role in maintaining global oil market balance and stability. He also stressed the importance of energy supply security for the global market. Moreover, both countries agreed on a number of main areas of cooperation in the energy sector, including supply of crude oil and its derivatives, projects on oil and gas refineries and petrochemicals, new and renewable energy, energy efficiency, carbon management, clean hydrogen energy and artificial intelligence use for sustainable energy.
Both Parties agreed on the importance of cooperation in developing and implementing projects on renewable energy and energy storage, and promoting technology transfer, capacity building, and collaborative research to support national energy transition, as outlined in the joint statement.
In the mineral sector in particular, both countries will collaborate in the exchange of knowledge of geology, mining exploration, mine processing, and the application of modern technology. As a concrete follow-up, Indonesia and Saudi Arabia also agreed to develop a joint roadmap aimed at creating a conducive investment environment, facilitating capital flow, and reducing regulatory barriers.
The strategic cooperation is an important milestone for long-term economic partnership between Indonesia and Saudi Arabia, marking a joint vision for sustainable, green, and inclusive development in the global transformation era. (BPMI of Presidential Secretariat) (RD/TM)
