Saudi Arabia and Indonesia signed several agreements and memoranda of understanding worth around $27 billion between private sector institutions, Reuters reported.
Indonesian President Prabowo Subianto visited the Kingdom and met with Saudi Crown Prince Mohammed bin Salman. During the visit, the two countries concluded agreements covering clean energy, petrochemicals, and aviation fuel services.
The two governments agreed to deepen cooperation in crude oil and its derivatives. They also plan to develop more resilient and sustainable energy supply chains and expand collaboration in mineral resources. In addition, they committed to jointly developing projects in electricity, renewable energy, and energy storage.
Saudi Arabia’s ACWA Power signed preliminary agreements with Indonesia’s sovereign wealth fund Danantara and state energy firm Pertamina. These partnerships will explore renewable energy investment opportunities. Danantara expects project funding to reach up to $10 billion.
The countries also pledged to adopt emerging technologies in the energy sector, including artificial intelligence and support for innovation ecosystems. Both sides will work together on carbon circular economy technologies and clean hydrogen development.
In addition to energy, the two countries discussed expanding cooperation in defence and security. They agreed to collaborate on shared strategic priorities, including combating terrorism, extremism, and organised crime. Future plans also include enhancing cybersecurity and increasing the exchange of information, expertise, and training.
The visit also provided an opportunity to review progress on economic cooperation. The two sides welcomed the ongoing Free Trade Agreement negotiations between the Gulf Cooperation Council (GCC) and Indonesia, with rounds held in September 2024 and February 2025. Both parties expressed hope for a successful conclusion in the near future.
In a joint statement cited by the Saudi Press Agency, both sides reported that bilateral trade reached approximately $31.5 billion over the past five years. This trade volume makes Saudi Arabia Indonesia’s leading trading partner in the region.
Finally, Saudi Arabia and Indonesia reaffirmed their commitment to promoting regional and global peace and security. They agreed to continue coordinating closely on international issues.
