DNA
JAKARTA: Indonesia and Saudi Arabia have signed an agreement to promote direct investment and facilitate cross-border capital flows, as Jakarta seeks to attract more Saudi companies to its strategic sectors.
The Saudi Minister of Investment Fahad bin Abduljalil Al-Saif and his Indonesian counterpart Rosan P. Roeslani signed a memorandum of understanding earlier this week, aimed at increasing economic cooperation.
The agreement is a “strategic step toward strengthening investment cooperation between Indonesia and Saudi Arabia,” Roeslani, who was in Jeddah for the signing ceremony, said in a statement on Thursday.
“Beyond the flow of capital, investment serves as an instrument to create jobs, strengthen national industries, drive innovation, and foster economic growth that delivers real benefits for the people.”
Under the new deal, the two countries will exchange industry statistics, business and investment opportunities, arrange private-sector consultations, and organize joint promotional activities, knowledge-sharing and expert visits, according to a statement issued by the Indonesian Ministry of Investment and Downstreaming.
It also serves as a platform to strengthen institutional coordination between Saudi and Indonesian investment authorities.
“Saudi Arabia is implementing its Vision 2030 agenda, while Indonesia continues to accelerate efforts in industrialization, downstreaming, infrastructure development and economic transformation. This shared development trajectory opens up immense opportunities for collaboration between our two countries,” Roeslani said.
Southeast Asia’s biggest economy already has a number of ongoing projects with Saudi Arabia, including with ACWA Power.
Last July, the Saudi power giant signed an agreement with sovereign wealth fund Danantara Indonesia to explore investment opportunities that are focused on renewable energy generation, combined cycle gas turbines, green hydrogen and water desalination, with project funding worth up to $10 billion.
According to Roeslani, Indonesia is opening up for investment that brings added value, fosters knowledge transfer and helps to develop local industries.
“We also want to strengthen collaboration in strategic sectors, from downstreaming (industry), manufacturing, infrastructure, renewable energy, logistics, property and digital technology,” he said.
“We want to see more Saudi companies investing in Indonesia, and more Indonesian companies exploring business opportunities in Saudi Arabia.”
