Indonesia, Saudi Arabia Forge Deeper Ties Through New Council

Deals worth $27 billion mark strengthened economic partnership

A new era of cooperation between Indonesia and Saudi Arabia is dawning with the launch of the Saudi-Indonesian Supreme Coordination Council, poised to dramatically accelerate collaboration across various sectors.

Strategic Alliance

Special Staff of the Religious Minister for Cooperation and Foreign Relations, Gugun Gumilar, hailed the diplomatic achievement of Indonesian President Prabowo Subianto in establishing the council with Saudi Arabia’s Prince Mohammed bin Salman bin Abdulaziz Al Saud (MBS).

The newly formed council aims to fast-track cross-sector cooperation, particularly concerning the development of an Indonesian hajj village in Saudi Arabia.

Gumilar stated that he appreciates this visit, which resulted in the signing of various business agreements worth around US$27 billion between Indonesian and Saudi Arabian business actors, covering the clean energy, petrochemical, and aviation fuel services sectors.

President Prabowo previously engaged with Crown Prince and Prime Minister of Saudi Arabia, Prince Mohammed bin Salman, at the Al-Salam Palace in Jeddah on Wednesday, February 7.

Economic Growth

Both Indonesia and Saudi Arabia are prioritizing the expansion of their economic and trade partnerships. Over the past five years, total bilateral trade has reached approximately US$31.5 billion, making Saudi Arabia Indonesia’s primary trading partner in the Gulf region.

According to the Observatory of Economic Complexity, Saudi Arabia is the top importer of Indonesian coffee, spices, and paper products (OEC, 2022).

Hajj Village Project

During the visit, discussions also centered around the proposed hajj village program, with President Prabowo pledging his full support for its realization.

Gumilar disclosed his involvement in planning meetings between Religious Minister Nasaruddin Umar, Coordinating Minister Zulkifli Hasan, and Investment Minister Rosan Roeslani, who accompanied President Prabowo in discussions with Saudi partners regarding the technical aspects of the Hajj Village.

The meeting, lasting approximately one hour, is considered a pivotal moment for strengthening Indonesia’s role in organizing the Hajj pilgrimage for years to come.

This initiative underscores the government’s dedication to providing optimal service to Indonesian pilgrims.

Gumilar expressed optimism, stating, Insya Allah, President Prabowo has recorded Indonesia’s golden diplomacy with Saudi Arabia through its seriousness in realizing the Indonesian hajj village and insya Allah, in the near future we can start realizing it.