Indonesia, Saudi Arabia Seal $27 Billion Investment Deal to Strengthen Strategic Ties
Main Takeaways
|
JAKARTA, Investortrust.id – Indonesia and Saudi Arabia have signed a $27 billion investment agreement covering clean energy, petrochemicals, and aviation fuel services, marking a significant expansion of bilateral economic ties.
President Prabowo Subianto and Saudi Crown Prince and Prime Minister Mohammed bin Salman (MBS) announced the deal during a high-level state visit at Al-Salam Palace in Jeddah on Wednesday, July 2, 2025. The agreement underscores a new phase of strategic cooperation between Southeast Asia’s largest economy and the Gulf’s leading energy exporter.
In a joint statement, both leaders committed to broadening their partnership beyond trade and investment. They highlighted health services—particularly those related to Hajj and Umrah pilgrimages—as a priority sector, alongside healthcare technology, vaccine development, and pharmaceutical investment. The partnership aims to enhance the experience of Indonesian pilgrims and build long-term capacity through technology transfer and human capital development.
Expanding Multisector Collaboration
Beyond healthcare, the agreement spans a wide array of sectors including digital economy, education, labor mobility, culture, tourism, youth and sports, legal systems, agriculture, fisheries, and food security. Aviation connectivity and logistics infrastructure are also set to benefit from closer collaboration.
The two countries emphasized cooperation in defense, cybersecurity, and counterterrorism. Both leaders expressed a shared determination to combat transnational crimes and the financing of extremist activities, while also enhancing information sharing and capacity-building in cyber resilience.
Several memoranda of understanding were signed during the visit, involving business leaders from both nations. The $27 billion commitment reflects mutual trust and ambition to elevate economic cooperation between two major players in the Islamic world and the broader Asian region.
Global Coordination and Religious Diplomacy
Prabowo and MBS pledged to coordinate more closely within international forums including the IMF, World Bank, G20, the Organization of Islamic Cooperation (OIC), and the Non-Aligned Movement. The move aims to strengthen the voice of emerging economies in global economic governance.
In a gesture symbolizing the spiritual and diplomatic closeness between the two countries, President Prabowo performed the Umrah pilgrimage during his visit. He was granted rare access to enter the Kaaba and perform special prayers within its walls—an honor extended to few state leaders.
Following his Umrah, Prabowo greeted Indonesian pilgrims in Makkah, reinforcing the emotional bond between the President and the people. He was accompanied by several high-ranking officials, including Minister of Foreign Affairs Sugiono, Minister of Religious Affairs Nasaruddin Umar, and Minister of Investment and Downstreaming Rosan Roeslani.