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Saudi Aramco's Investments Spread Across Asia, Yet Indonesia Remains Untapped

Monday, July 29, 2024 | July 29, 2024 WIB
Saudi Aramco's Investments Spread Across Asia, Yet Indonesia Remains Untapped


Langgam Pos - In a recent meeting with Saudi Arabian Ambassador to Indonesia Faisal bin Abdullah Al-Amudi, Coordinating Minister for Economic Affairs Airlangga Hartarto discussed several key issues, including a proposal from President-Elect Prabowo Subianto regarding the establishment of an Indonesian Village in Mecca.

The discussion took place at the Ministry of Economic Affairs' office, where Minister Airlangga and Ambassador Faisal focused on enhancing economic ties and cooperation between the two nations, as well as the management of hajj and umrah pilgrimages.

Minister Airlangga praised Saudi Arabia for its longstanding positive relationship with Indonesia, particularly in facilitating hajj and umrah. He urged Saudi Arabia to increase its investments in Indonesia. “With approximately 1.4 million Indonesians performing hajj and umrah annually, and each spending around USD 5,000, the total foreign exchange inflow amounts to USD 7 billion. Therefore, Saudi Arabia should consider larger investments in Indonesia,” Minister Airlangga said in a written statement on Tuesday (July 30, 2024).

Ambassador Faisal agreed, noting that while the hajj and umrah cooperation is robust, both countries should also focus on bolstering economic and investment collaborations. He highlighted that President Joko Widodo visited Saudi Arabia twice in 2023, and met with Saudi Crown Prince Mohammed bin Salman in Riyadh in October 2023. This visit led to the signing of several memoranda of understanding between the two governments.

“Saudi Arabia has Vision 2030, and Indonesia aims for Golden Indonesia 2045, so new ideas are needed to strengthen our economic cooperation,” Ambassador Faisal remarked.

Private Sector Investments

Ambassador Faisal emphasized the importance of encouraging private sector partnerships and investments, pointing out that companies like Aramco and ACWA Power should be motivated to invest and engage in various projects in Indonesia.

He also noted that while Aramco has established a presence in Singapore, Malaysia, and Thailand, it has yet to make significant investments in Indonesia.

In response, Minister Airlangga revealed plans to allocate at least 15 hectares of land in Batam for the construction of a mosque and Islamic Center, aiming to create an iconic monument. Ambassador Faisal expressed his intent to visit Batam soon to review the land and explore potential economic cooperation opportunities.

“We have prepared land in Batam for the construction of a mosque and Islamic Center, as well as an iconic monument,” Minister Airlangga confirmed.

Indonesian Village

Additionally, Minister Airlangga introduced the proposal from President-Elect Prabowo Subianto for an Indonesian Village in Mecca. Ambassador Faisal responded positively, stating that the Saudi Arabian government is confident that Indonesia-Saudi Arabia relations will strengthen further.

Ambassador Faisal also mentioned that this proposal was discussed during President-Elect Prabowo's meeting with the Saudi Arabian government.

The meeting was attended by Secretary of the Ministry of Economic Affairs Susiwijono Moegiarso and representatives from the Indonesian Mosque Council and the Indonesian Ulema Council.


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