- $27B in agreements signed to boost cooperation in energy, defence, and technology.
- Focus areas include renewable energy, AI, cybersecurity, and hydrogen innovation.
- Ongoing free trade talks with the GCC aim to deepen economic ties further.
Saudi Arabia and Indonesia have finalized several economic and strategic deals amounting to $27 billion, signifying a significant advancement in the bilateral relationship between these two rising global players. The agreements were concluded during the official visit of the Indonesian President to Riyadh, bolstering the aspirations of both nations to enhance collaboration in essential sectors such as energy, defense, cybersecurity, and technology.
The agreements prioritized energy collaboration, with both countries pledging to enhance their cooperation in essential sectors. These comprise the provision of crude oil and the growth of petrochemical sectors, improving electricity production and encouraging the utilization of renewable energy sources. They also seek to promote advancements in hydrogen generation and energy storage technology.
These agreements advance Saudi Arabia’s Vision 2030 and Indonesia’s transition to green energy, establishing the partnership as a prospective blueprint for low-carbon development in the Global South. The nations also consented to enhance cooperation in aviation fuel services and additional clean energy projects, emphasizing their mutual interest in sustainable development and circular economy strategies.
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Cybersecurity, defence, and regional security cooperation were key components of the high-level discussions. Saudi and Indonesian officials agreed to enhance collaboration in counter-terrorism and combating transnational crime, boost efforts in cybersecurity, and strengthen information sharing, training, and operational coordination. This strategic alignment underscores a growing convergence on regional and global security priorities, particularly in the face of evolving geopolitical dynamics.
Trade, technology, and strategic growth were central to the discussions, with both nations reaffirming their shared vision for future cooperation. They committed to working together on emerging technologies, including artificial intelligence, developing robust frameworks to support a carbon circular economy, and accelerating digital transformation efforts in both countries.
Indonesia and the Gulf Cooperation Council (GCC) are in the process of negotiating a free trade agreement, with meetings scheduled for September 2024 and February 2025. Both countries showed hope for reaching a final agreement shortly. In the past five years, trade between Saudi Arabia and Indonesia has totaled $31.5 billion, with the Kingdom currently being Indonesia’s leading trading partner in the area.