Saudi Arabia and Indonesia deepen ties with $27bn in agreements, boosting trade, energy, defence and pilgrimage cooperation, signalling a new chapter in strategic partnership.
Saudi Arabia and Indonesia inked a raft of agreements and memoranda of understanding worth a staggering US$27 billion, signalling a new chapter in their long-standing partnership. The wide-ranging deals, signed during Indonesian President Prabowo Subianto’s official visit to the Kingdom, span key sectors including clean energy, petrochemicals, aviation fuel services, and emerging technologies.
The high-profile visit culminated in a joint statement, released by the Saudi Press Agency (SPA), highlighting robust bilateral ties. The two nations noted that their trade volume over the past five years stood at approximately $31.5 billion, making Saudi Arabia Indonesia’s largest trading partner in the Middle East.
President Subianto was received with full ceremonial honours at Al-Salam Palace in Jeddah, where he was welcomed by His Royal Highness Crown Prince Mohammed bin Salman, who is also the Kingdom’s Prime Minister. The two leaders held an official session of talks, reaffirming their shared commitment to deepening cooperation across a range of strategic sectors.
Following the talks, both leaders co-chaired the inaugural session of the Saudi-Indonesian Supreme Coordination Council and signed the meeting’s minutes. The council is envisioned as a vehicle for strengthening bilateral coordination and implementing high-level agreements.
The Saudi delegation at the session included senior cabinet members such as Energy Minister Prince Abdulaziz bin Salman, Interior Minister Prince Abdulaziz bin Saud, and Minister of Defence Prince Khalid bin Salman. On the Indonesian side, prominent officials like Foreign Minister Sugiono, Religious Affairs Minister Dr. Nasaruddin Umar, and Investment Chief Rosan Roeslani were in attendance.
Major sectoral cooperation outlined
One of the most notable aspects of the visit was the signing of agreements in the energy domain. Saudi Arabia and Indonesia agreed to bolster collaboration in crude oil and derivative supply, petrochemicals, and renewable energy. They also pledged to work together on developing sustainable energy supply chains and energy storage technologies.
Both sides expressed a strong interest in advancing innovation in the energy sector through the application of artificial intelligence and fostering ecosystems around clean hydrogen and carbon circular economy technologies.
Defence, cybersecurity and peacebuilding
In the field of defence and security, the two countries reaffirmed their intent to strengthen cooperation on shared security interests. This includes efforts to combat terrorism and extremism, enhance cybersecurity, and deepen collaboration through training and intelligence sharing.
The discussions also delved into pressing regional and international issues, with both leaders pledging to continue coordinating their positions to promote international peace and stability. Saudi Arabia and Indonesia, both influential members of the Organisation of Islamic Cooperation (OIC) and the G20, have maintained a shared stance in favour of diplomacy and peaceful conflict resolution.
Economic diplomacy
Economically, the visit underscored Saudi Arabia’s pivotal role in Indonesia’s energy and trade frameworks. Aramco has maintained a dominant 25–30% share of Indonesia’s gasoline market over the past four years and remains its top crude oil supplier, delivering an average of 11 million barrels annually.
The two sides also reaffirmed support for a proposed Free Trade Agreement between the Gulf Cooperation Council (GCC) and Indonesia. Negotiations held in late 2024 and early 2025 have made significant headway, with both Riyadh and Jakarta hopeful of finalising the deal in the near future.
Saudi investments in Indonesia have exceeded $669 million across more than 110 development and humanitarian projects, cementing its role as a key development partner.
Saudi Arabia was among the earliest countries to recognise Indonesia’s independence in the late 1940s. Since the formal establishment of diplomatic relations in the early 1950s, bilateral ties have continued to deepen through high-level exchanges and strategic cooperation.
Milestone visits such as King Salman’s historic trip to Jakarta in 2017 and the Crown Prince’s participation in the 2022 G20 Summit in Bali have further elevated the partnership. Last year’s agreement to establish the Saudi-Indonesian Supreme Coordination Council demonstrated a mutual aspiration to institutionalise cooperation.
In a cultural nod, initiatives like “Arabic Language Month” organised by the King Salman Global Academy for Arabic Language in Indonesia have helped foster people-to-people connections.
Pilgrimage and people movement
Each year, about 221,000 Indonesians travel to Saudi Arabia for Hajj, with many more performing Umrah. The successful implementation of the Makkah Route Initiative at Indonesian airports has streamlined pilgrim processing and underscored the Kingdom’s dedication to facilitating religious journeys.
President Subianto, during his visit, also performed the Umrah pilgrimage and was welcomed at the Grand Mosque in Makkah by senior Saudi officials.
