Saudi Arabia, Indonesia seal $27 billion in deals

Dubai: Saudi Arabia and Indonesia signed a series of agreements and memorandums of understanding worth a combined $27 billion, deepening economic and strategic cooperation across sectors ranging from energy and petrochemicals to defence and cybersecurity.

The signings came during a visit to the Kingdom by Indonesian President Joko Widodo, on Wednesday, underscoring the growing importance of bilateral ties between Southeast Asia’s largest economy and the Gulf’s biggest oil exporter.

Among the agreements were commitments to expand collaboration in clean energy, aviation fuel services, and petrochemical industries. The two governments also reaffirmed their shared interest in emerging technologies, including artificial intelligence and carbon circular economy models.

Over the past five years, bilateral trade between the two nations has reached approximately $31.5 billion, with Saudi Arabia now standing as Indonesia’s top trading partner in the region.

Both sides welcomed progress made in negotiations for a free trade agreement between Indonesia and the Gulf Cooperation Council, which held rounds in September 2024 and February 2025, expressing optimism that a final accord could be reached soon.

In the energy sector, Riyadh and Jakarta committed to strengthening cooperation on crude oil supplies, petrochemical development, electricity generation, and renewable energy.

The two nations also pledged to jointly pursue innovations in hydrogen production and energy storage technologies, positioning their partnership as a potential model for low-carbon collaboration in the Global South.

Defence and security also featured prominently in the discussions. Saudi and Indonesian officials agreed to bolster joint efforts to combat terrorism, transnational crime, and cyber threats, while enhancing information sharing, training, and operational coordination.

The move signals a broader alignment on regional and global security concerns, particularly at a time of heightened geopolitical flux.

As both countries pursue ambitious economic diversification strategies — Vision 2030 in Saudi Arabia and Indonesia’s ongoing infrastructure and green energy transitions — the deals mark a pivotal step toward a more structured and multifaceted partnership.