Indonesia, Saudi Arabia Explore Investment Opportunities

TEMPO.CO, Jakarta - Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto, met with Saudi Arabian Ambassador Faisal bin Abdullah Al-Amudi at his office in Jakarta to discuss potential investment collaborations between the two nations.

Highlighting that at least 1.4 million Indonesian pilgrims visit Saudi Arabia for Hajj and Umrah every year, Airlangga emphasized the potential economic benefits. If each Indonesian pilgrim spends an average of US$5,000 each, the annual influx of foreign exchange would reach US$7 billion.

“So, Saudi Arabia should consider increasing its investments in Indonesia,” Airlangga said in an official statement on Tuesday, July 30. He underlined the potential for mutual economic growth.

The Golkar Party politician also conveyed the proposed establishment of an Indonesian Village in Mecca, initiated by President-elect Prabowo Subianto. 

Ambassador Faisal expressed support for the idea, recognizing its potential to strengthen bilateral ties.

He added that the two countries need to focus more on expanding economic and investment cooperation beyond the Hajj and Umrah sectors. President Joko Jokowi Widodo, according to him, has visited Saudi Arabia twice last year. 

Jokowi met with Saudi Prime Minister Mohammed bin Salman Al-Saud in Riyadh, which was followed by the signing of several memorandums of understanding between the countries. 

To foster further collaboration, Faisal stressed the importance of encouraging private-sector engagement. He cited the example of Saudi Arabian energy giant Saudi Aramco, which has established a presence in Singapore, Malaysia, and Thailand but has yet to invest significantly in Indonesia.

ILONA ESTHERINA

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