Saudi Arabia's Minister of Industry Set to Visit Indonesia

TEMPO.CO, Jakarta - The Minister of Industry and Mineral Resources of the Kingdom of Saudi Arabia, Bandar Al-Khorayef, is preparing for an official visit to Indonesia. The visit follows the increasing public attention on the developing relations between Saudi Arabia and Indonesia.

The high-level delegation led by Al-Khorayef aims to strengthen cooperation in the industrial and mining sectors. Indonesia is an important trading partner for the Kingdom of Saudi Arabia with a bilateral trade value exceeding US$6 billion in 2023.

"During the visit, His Excellency will meet with several important public sector officials, including the Minister of Energy and Mineral Resources and the Minister of Industry of the Republic of Indonesia," the Ministry of Industry and Mineral Resources of the Kingdom of Saudi Arabia said in a statement on Friday, April 11, 2025.

Al-Khoyaref is also scheduled to hold discussions with several private sector representatives, including the CEO of PT Vale Indonesia, Febriany Eddy, and the CEO of BioPharma, Shaqiq Akasya.

Al-Khoyaref's visit marks an increase in strategic and economic cooperation between the two countries, particularly in the mining sector. Several key strategic industries are also the focus of cooperation, such as pharmaceuticals, food industry, and automotive.

Indonesia has become a vital economic and geopolitical partner for the Kingdom of Saudi Arabia in Southeast Asia. This reflects a strong mutual interest and a spirit to deepen involvement in various sectors.

The main focus of this visit is to strengthen the collaboration between the Kingdom of Saudi Arabia and Indonesia in the mining sector. With Indonesia's mineral fuel exports reaching 67 Billion USD and imports amounting to 38 Billion USD in the last fiscal year, this sector offers significant opportunities for long-term growth.

The Kingdom of Saudi Arabia has made strategic investments in Indonesia through the private sector, including its ownership of Vale Indonesia, a subsidiary of the global mining company Vale.

This partnership demonstrates the Kingdom of Saudi Arabia's interest in expanding its role in Indonesia's mining sector, while supporting sustainable development in one of the world's richest resource regions.

Vale Indonesia is one of the largest nickel producers, a crucial component in electric vehicle (EV) batteries.

Saudi Arabia is among the countries making substantial investments in renewable energy and EV technology as part of the Vision 2030 agenda. Saudi Arabia sees this collaboration as a strategic step to ensure the fulfillment of its clean energy transition resources.

As global demand for electric vehicles increases, Saudi Arabia's investments are expected to open opportunities for further exploration and infrastructure development in Indonesia's mining sector.

In 2024, Indonesia's global exports reached US$217 billion, a 1.3 percent increase compared to the previous year. Indonesia also targets a global export value of US$405 billion in 2029.

The Kingdom of Saudi Arabia plays a significant role in this achievement, with imports from Indonesia reaching over US$2 billion in 2023 while Indonesian product exports to Saudi Arabia reached USD$4 billion.

Indonesia's Contribution to Saudi Arabia

One example of Indonesia's contribution in the food industry to the Kingdom of Saudi Arabia is the presence of Indofood, one of the largest consumer goods companies in Indonesia, which has expanded its operations in the Kingdom of Saudi Arabia.

Indofood's instant noodles first appeared in the market in the Kingdom of Saudi Arabia in 1986 and is now widely distributed throughout the country.

The Jeddah Food Cluster, the world's largest food cluster, is an important potential collaboration area. This cluster is positioned as a regional halal food production and distribution center, in line with Indonesia's position as the world's largest halal market.

In addition, the Jeddah Food Cluster is strategically located near the main port of the Kingdom of Saudi Arabia, facilitating cross-continental exports to Africa, Europe, and Asia.

In December 2023, the Kingdom of Saudi Arabia and Indonesia signed a Memorandum of Understanding (MoU) to enhance cooperation in halal product assurance and mutual recognition of halal certification.

The agreement aims to align standards and simplify certification processes, reduce trade barriers, and create new opportunities for Indonesian halal producers to access the markets of the Kingdom of Saudi Arabia and the GCC region more extensively.

The visit of His Excellency Bandar Al-Khorayef marks a new phase in the relationship between the two countries, focusing on innovation, sustainable development, and cooperation in strategic sectors.

In addition to mining and the food industry, discussions are also expected to include renewable energy, infrastructure, and industrial expertise exchange.

Through increased trade, strategic investment, and collaboration in the halal sector, the Kingdom of Saudi Arabia and Indonesia aim to pave the way for a future of shared prosperity and mutually beneficial growth.

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