His Excellency Bandar Al-Khorayef, Minister of Industry and Mineral Resources in Saudi Arabia, is currently preparing to visit Indonesia and all eyes are on the flourishing relationship between the two nations.
Saudi Arabia has long recognized Indonesia as a key partner in Southeast Asia, and the upcoming visit by a high- level delegation led by His Excellency Bandar AlKhorayef, is expected to further cement cooperation in industry & mining sectors. Indonesia is a key trading partner for Saudi Arabia with bilateral trade reaching more than USD 6 billion in 2023.
The visit underscores the growing strategic and economic cooperation between the two nations, particularly in the areas of mining and key strategic industrial sectors including pharmaceuticals, food industry, and automotive.
Indonesia has emerged as a vital economic and geopolitical partner for Saudi Arabia in Southeast Asia. In 2023, bilateral trade between the two countries exceeded USD6 billion, reflecting a strong foundation of mutual interest and an eagerness to deepen engagement across several high-growth sectors.
A major focal point of the upcoming visit will be the strengthening of Saudi-Indonesia collaboration in the mining sector. With Indonesia’s mineral fuel exports valued at USD67 billion and imports reaching USD38 billion in the last fiscal year, the sector offers expansive opportunities for long-term growth.
During the visit, His Excellency will meet with several key officials from the public sector including his counterparts, Indonesia’s Minister for Energy and Mineral Resources, and Minister of Industry of Indonesia. His Excellency will also converse with members of the private sector, including the Director and CEO of PT Vale Febriany Eddy and CEO of BioPharma, Shaqiq Akasya.
Saudi Arabia has already made strategic investments in the country through its private sector, including its stake in Vale Indonesia, a subsidiary of the global mining giant Vale. This partnership highlights the Kingdom’s interest in expanding its footprint in Indonesia’s mining landscape, while supporting the sustainable development of one of the world’s most resource-rich regions.
Vale Indonesia is among the top producers of nickel – an essential component in electric vehicle (EV) batteries. Saudi Arabia which is investing heavily in renewable energy and EV technologies as part of its Vision 2030 agenda, could view collaboration in this area as a gateway to securing critical resources for its clean energy transition. As global demand for EVs continues to rise, Saudi Arabia’s investment will help unlock further exploration processing and infrastructure development in Indonesia’s mining sector.
In 2024, Indonesia’s global exports reached USD217 billion, a 1.3% year-on-year increase. Indonesia also has a target of reaching USD405 billion in global exports by 2029.
Saudi Arabia has played a key role in this trajectory, importing more than USD2 billion in goods from Indonesia in 2023, while exporting USD4 billion worth of products to the country.
A notable example of Indonesia’s growing contribution in Saudi Arabia’s food industry is the presence of Indofood, one of Indonesia’s largest consumer goods companies, which has expanded its operations in the Kingdom. Indofood’s instant noodles first emerged on the Saudi market in 1986 and are now widely distributed across Saudi Arabia.
Worthmentioning, the Jeddah Food Cluster, the largest food cluster in the world, represents a key area for potential collaboration. The cluster is positioned as a regional hub for halal food production and distribution, aligning closely with Indonesia’s position as the world’s largest halal market. The Jeddah Food cluster is also strategically located near Saudi Arabia’s key ports that facilitate exports across continents such as Africa, Europe and Asia…
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