Jakarta – Strategic cooperation between Indonesia and Saudi Arabia will boost national economic growth. Through cooperation between the Nusantara Power Investment Management Agency (BPI Danantara) and a leading Saudi energy company, ACWA Power, the two countries have agreed to realize a large concession worth US$10 billion or around Rp162 trillion for the development of clean energy projects.
This monumental step marks the increasingly close economic partnership between the two countries and is seen as the main driver of Indonesia’s economic growth in the future. Danantara Indonesia Chief Executive Officer (CEO) Rosan Roeslani said that this investment cooperation is part of the results of the Indonesian President’s state visit to Saudi Arabia.
“The two heads of state also agreed to an investment cooperation worth USD 10 billion between Danantara and ACWA, for the development of large projects in the clean energy sector,” said Rosan Roeslani.
Not only in the energy sector, this partnership also covers the social and religious sectors through the development of the Indonesian Hajj Village in Mecca, which is part of the strategic concession. This project demonstrates a collaborative approach between the two countries by considering the spiritual, economic, and pilgrim service aspects.
“The two heads of state also agreed to a concession for the development of the Indonesian Hajj Village in Mecca,” said Rosan.
This major agreement is part of the total value of the agreement signed during President Prabowo Subianto’s visit to Saudi Arabia, with a total value reaching US$27 billion or equivalent to Rp437.8 trillion. The memorandum of understanding covers the fields of clean energy, digital economy, and future industry.
As a form of strengthening institutional relations, the two countries also formed the Saudi-Indonesia Supreme Coordination Council which was signed by President Prabowo Subianto and the Crown Prince of Saudi Arabia, Prince Mohammed bin Salman bin Abdulaziz Al Saud (MBS). This council will be the main forum to monitor the implementation of cross-sector strategic partnerships.
“We have just formed the Supreme Coordination Council between Saudi and Indonesia. We have agreed to increase all cooperation between all parties. So, I am very satisfied. Alhamdulillah, it is productive. God willing, we will see an increase in cooperation between us and Saudi Arabia,” said President Prabowo.
This investment is believed to have a significant impact on the Indonesian economy, including by creating new jobs, strengthening the industrial downstream sector, and encouraging the use of environmentally friendly technology. In addition, the two countries also agreed to increase cooperation in the energy sector, including hydrogen technology and energy conservation through joint training and research.
With a bilateral trade value reaching US$31.5 billion in the last five years, Saudi Arabia continues to be Indonesia’s main trading partner in the region. This agreement is real proof that the strategic concessions that have been established are not only symbolic, but real in encouraging sustainable long-term economic growth.