Indonesia and Saudi Arabia on Thursday announced the signing of US$27 billion in investment agreements across clean energy, petrochemicals, and aviation fuel services, as part of efforts to elevate their bilateral ties into a comprehensive strategic partnership. 

The announcement came at the conclusion of President Prabowo Subianto’s state visit to the Kingdom, where he was received by Crown Prince and Prime Minister Mohammed bin Salman at Al-Salam Palace.

Both leaders co-chaired the first meeting of the Saudi-Indonesian Supreme Coordination Council, which endorsed governance structures and policy recommendations aimed at deepening cooperation in energy, defense, trade, investment, and humanitarian issues.

In a joint statement, the two nations reaffirmed their commitment to enhancing bilateral relations across sectors, while aligning Indonesia’s Golden Vision 2045 with Saudi Arabia’s Vision 2030. “ They agreed to boost cooperation in energy security, green technologies, and downstream industries, and vowed to strengthen public-private partnerships through mechanisms like investment forums and the Saudi-Indonesian Business Council,” read the joint statement on Thursday, July 3, 2025.

Energy, investment cooperation

Indonesia expressed support for Saudi Arabia’s stabilizing role in global oil markets and welcomed enhanced collaboration in oil and petrochemicals, energy transition, carbon capture technologies, and hydrogen development. The two sides pledged to improve energy efficiency and build resilient supply chains in both countries.

They also emphasized plans to streamline investment regulations, encourage cross-border capital flows, and co-develop strategic industries such as mining, logistics, financial services, and green technology. Both parties agreed to facilitate executive-level engagement through institutional platforms and establish a joint roadmap to boost private sector collaboration.

Both sides were committed to developing stronger defense and security cooperation, particularly in counterterrorism, cybersecurity, information exchange, and capacity building. This includes future collaboration on defense industries and joint training programs to support regional and global security.

Support for Palestine

Indonesia and Saudi Arabia reiterated support for the Palestinian cause, condemning the humanitarian catastrophe in Gaza and Israel’s continued blockade and military operations. They demanded the international community pressure Israel to honor ceasefires, allow humanitarian access, and end displacement policies.

The two sides also reaffirmed the need for a two-state solution based on 1967 borders with East Jerusalem as the Palestinian capital. Indonesia praised Saudi Arabia’s leadership role in advancing this agenda through the Global Alliance for the Implementation of the Two-State Solution and multilateral diplomatic efforts.

On regional issues, both nations backed a comprehensive political solution in Yemen, supported Syria’s sovereignty and welcomed the easing of sanctions, and urged continued dialogue through the Jeddah Forum to resolve Sudan’s internal conflict.

They emphasized the importance of stability in the Red Sea region and maritime security, recognizing its strategic value to global commerce.

Future outlook and mutual recognition

President Prabowo expressed appreciation for the warm hospitality extended by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and the Crown Prince. He formally invited Crown Prince Mohammed bin Salman to make a reciprocal visit to Indonesia, which the Crown Prince welcomed.

The two countries vowed to maintain close coordination in international organizations including the United Nations, G20, Islamic Development Bank, and Non-Aligned Movement, in addressing global economic and security challenges.

The visit marks a new chapter in Indonesia-Saudi relations, solidifying strategic, economic, and diplomatic alignment between two of the world’s most influential Muslim-majority countries.

Agreements

In addition to intergovernmental agreements, the state visit also led to a series of major business-to-business (B-to-B) :

* A MoU between BPI Danantara and ACWA Power for a 10 GW renewable energy project;

* A clean energy partnership between PT Pertamina and ACWA Power for 500 MW development;

* A jet fuel services deal between PT Pertamina Patra Niaga and AlShams;

* A construction project agreement between PT Waskita Karya and PLADCO;

* A joint venture between VELA and SISA for the development and assembly of Alpha aircraft;

* A digital technology hub collaboration between Cyber Mantra and Forytine Arch with ITEAC in Saudi Arabia.

President Prabowo was accompanied during the visit by senior members of his cabinet and key officials, including the Minister of Foreign Affairs, Coordinating Minister for Food, Minister for Investment and Downstreaming/Head of Investment Coordinating Board (BKPM), Minister of Religious Affairs, Head of Haj Management Agency (BPH), Cabinet Secretary, Indonesian Ambassador to Riyadh, and the Director General for Asia-Pacific and African Affairs at the Ministry of Foreign Affairs.