Indonesia, Saudi Arabia to Deepen Industrial Cooperation Amid Global Uncertainty
Jakarta, The Gulf Observer: Indonesia and Saudi Arabia have committed to strengthening bilateral cooperation in the industrial sector in response to rising global economic uncertainty and evolving policies from the United States.
This strategic collaboration was the focus of discussions held in Jakarta on Wednesday between Indonesian Minister of Industry Agus Gumiwang Kartasasmita and Saudi Arabian Minister of Industry and Mineral Resources Bandar Alkhorayef.
“This global uncertainty is a shared concern. We need to carefully observe and identify the right policies to cushion ourselves against any measures that might come from the US. To navigate this uncertainty, we’ve agreed to deepen cooperation between our two nations,” Minister Kartasasmita stated following the meeting.
Highlighting the current bilateral trade volume of US$3.3 billion in 2024—which he deemed relatively modest—Kartasasmita underscored the considerable potential for expanded industrial collaboration. He proposed that both nations pursue mutually beneficial initiatives in sectors such as petrochemicals and mineral development.
Kartasasmita emphasized the importance of advancing downstream activities in the petrochemical industry to strengthen related manufacturing sectors. He also welcomed Saudi Arabia’s interest in investing in Indonesia’s mineral downstreaming efforts.
“They’ve indicated their readiness to invest in Indonesia’s mineral sector, including to secure their market presence within their overall investment strategy,” he said.
To formalize this burgeoning partnership, both sides discussed drafting a memorandum of understanding (MoU) aimed at identifying priority projects aligned with their shared strategic interests.
“This MoU will focus specifically on projects where Saudi Arabia and Indonesia have common interests, as well as projects that can yield quick and tangible results,” Kartasasmita added.
During his visit, Minister Alkhorayef also met with representatives from MIND ID, Indonesia’s state-owned mining industry holding company, to explore opportunities in mineral downstreaming and mining sector transformation.
Both countries reiterated their commitment to creating greater added value in the mineral sector—not only for economic benefits but also to support sustainability and long-term resilience in the face of global economic headwinds.
