Indonesian Defense Minister Prabowo Subianto on Wednesday met with new Saudi Crown Prince Mohammed bin Salman at Al-Salam Palace in Riyadh. This meeting is a milestone in furthering the special bilateral relations between Indonesia and Saudi Arabia. This high-level meeting culminated in the announcement of a $27 billion partnership aimed at enhancing cooperation across various sectors. Those agreements became official on Thursday, with a flurry of expected announcements during the day’s talks at the coronation palace.
Through a joint working group established during their meeting, Subianto and bin Salman began discussing ways to cooperate in three main areas. Additionally, they singled out crude oil supply, mining and minerals processing, green technologies, agriculture and pharmaceuticals as key sectors in which bilateral engagement should deepen. Beyond the economic benefits, these agreements hold promises for technological exchange between Indonesia and Saudi Arabia.
The $27 billion agreement includes various investments and tentative agreements. Of these, some of the largest include commitments to clean energy initiatives and a widening of the petrochemical industry. The focus on green technologies aligns with global trends towards sustainability, reflecting both nations’ dedication to addressing environmental concerns while fostering economic development.
According to reports, Prabowo Subianto’s Saudi Arabia trip was part of a larger diplomatic offensive. On his way to Brazil, he made a brief stop in the Saudi Arabian city of Jeddah. This timely journey further reinforces Indonesia’s clear intent to long-standingly deepen its international relations and play a sizable and constructive role on the global stage. This latest round of discussions with bin Salman represents a key turning point in Indonesia-Saudi Arabia relations. These connections have been rapidly expanding through recent winter seasons.
The new partnership is likely to produce enormous economic, educational, and cultural benefits for both countries. For Indonesia, greater investment from Saudi Arabia could strengthen Indonesia’s post-pandemic recovery and accelerate the nation’s energy transition agenda. Now Saudi Arabia looks to gain access to Indonesia’s immense mineral wealth. It seeks to break into new markets, particularly in agribusiness and drugs.