Minister of Industry Explores Mutual Investment Opportunities During Two-Day Official Visit to Indonesia, Discussing Various Sectors
Saudi Arabia’s Minister of Industry and Mineral Resources, Bandar bin Ibrahim Al-Khorayef, is leading a high-level delegation to Indonesia in a two-day official visit scheduled for April 15-17. The purpose of the visit is to enhance the economic ties between the two countries, attract quality investments to the Kingdom, explore mutual investment opportunities in the mining sector, as well as other industrial sectors including food, pharmaceuticals, and automotive components.
Aligned with Saudi Arabia’s Vision 2030 goals to diversify the economy and become a leading industrial force globally, the delegation will engage in strategic meetings with senior government officials from various ministries, as well as meet with leaders of major Indonesian mining, food, and pharmaceutical companies, in addition to other strategic industrial sectors. Key meetings will be held in Jakarta with the Minister of Energy and Mineral Resources, the Minister of Industry, and private sector leaders including the CEO of PT Vale and the President of BioPharma.
Indonesia is a strategic partner of the Kingdom in Southeast Asia, with bilateral trade between the two countries reaching SAR 22.5 billion by the end of 2023. Saudi exports to Indonesia accounted for SAR 15 billion, while Indonesian imports exceeded SAR 7.5 billion, demonstrating the strong economic relations and mutual desire to expand cooperation and leverage opportunities in key sectors.
At the international level, Indonesia’s exports to the world in 2024 reached approximately SAR 814 billion, with an annual increase of 1.3%. The visit will focus on enhancing cooperation in the mining sector, as Saudi Arabia is in a crucial stage of developing its mining sector to maximize the national economy’s benefits and explore its vast mineral wealth estimated to be over SAR 9.3 trillion. Indonesia’s economic indicators show a rich mineral wealth, with fuel mineral exports reaching around SAR 251 billion, offering promising opportunities to enhance cooperation in the mining and metals sector between the two countries.
Saudi investments in Vale Indonesia, a subsidiary of global mining giant Vale, exemplify the Kingdom’s interest in boosting mining investments in Indonesia. Vale Indonesia is one of the leading nickel producers, a key element in electric vehicle batteries, aligning with Saudi Arabia’s focus on investing in clean energy and electric vehicles as a strategic move to secure vital resources necessary for transitioning to a low-carbon economy.
The visit also aims to develop cooperation in the food industry, one of the top 12 industrial sectors targeted for development and localization under the national industrial strategy. The Jeddah Food Cluster, the world’s largest food industrial zone, plays a significant role in cooperation between the two sides as a regional center for producing and distributing halal food products. This aligns with Indonesia’s position as the world’s largest halal products market, and the cluster’s strategic location near Jeddah Islamic Port facilitates access to Africa, Europe, and Asia, enhancing regional and global export opportunities.
In December 2023, Saudi Arabia and Indonesia signed a memorandum of understanding to enhance cooperation in halal product certification and mutual recognition of certificates, aiming to standardize criteria and facilitate certification procedures to reduce trade barriers and open new markets for Indonesian products in Saudi Arabia and the Gulf countries. Indonesian food company Indofood has been a leading player in the Saudi market since 1986 and is looking to expand its operations in the Kingdom.
Minister Al-Khorayef’s visit to Indonesia sets the stage for a new phase in bilateral relations, focusing on building a long-term strategic partnership that benefits their local economies and contributes to enhancing economic integration between the two countries.
