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Kamis, 11 Mei 2023

Meeting the Minister of Investment of Saudi Arabia, Bahlil Agree to Encourage Investment Cooperation with Saudi Arabia

Riyadh, May 11th, 2023 – On the first day of his Saudi Arabia business visit, the Minister of Investment/Chairman of the Investment Coordinating Board (BKPM) Bahlil Lahadalia met with the Minister of Investment of Saudi Arabia Khalid A. Al-Falih in Riyadh, Saudi Arabia in the afternoon (11 /5) local time. This meeting was the first between the investment ministers of the two countries. They discussed cooperation related to investment between the two countries, especially in terms of renewable energy and building hospitals.

"According to President Joko Widodo's directives, Indonesia is very open to investment, especially in downstream industries and green economy that uses green energy and industries. We started with downstream mineral resources. This is a big opportunity, and I expect a joint investment between Saudi Arabia and Indonesia," said Bahlil.

Bahlil added in the discussion that four years ago Indonesia had started downstream mining in the mining sector, initiated with a ban on nickel ore exports. Starting this year, several mineral resources commodities such as bauxite, copper concentrate, and tin will also be prohibited from being exported. This is part of the Indonesian Government’s efforts to encourage downstream mineral resources.

Minister Khalid welcomed Minister Bahlil's proposal and stated that Saudi Arabia already has close and good relations with Indonesia, both economic and diplomatic relations. Khalid appreciated Indonesia's efforts to transform the economy through the downstreaming of natural resources so as to reduce dependence on raw commodities. The two ministers also agreed that investment cooperation between the two countries was still not in accordance with the existing potential and could be further improved.

"Saudi Arabia is ready to explore opportunities for investment cooperation with Indonesia, particularly in relation to renewable energy and the construction of hospitals. We will follow up the results of this meeting and then put it in a more concrete form so that it will further encourage the realization of investment from Saudi Arabia in Indonesia," said Khalid.

Based on data from the Ministry of Investment/BKPM, investment realization from Saudi Arabia in the period 2018 to the first quarter of 2023 reached US$26.5 million, excluding investment in the financial sector and upstream oil and gas. The tertiary sector dominates with a total value of US$24.78 million or 94% with the highest achievement by the housing, industrial area, and office sector worth US$16.93 million or as much as 64% of the total investment value of Saudi Arabia in Indonesia. Bali Province became the main location for Saudi Arabia's investment realization with an achievement of US$10.3 million (39%), followed by West Java, East Java, Special Capital Region (DKI) Jakarta, and East Kalimantan in the last 5 years. Data for the last 10 years (2013-quarter I 2023) shows that Saudi Arabia's total investment was US$64.6 million from 423 projects. (*)

For further information, please contact:

Ricky Kusmayadi

Head of Communication and Information Services Bureau

Ministry of Investment/BKPM

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