August 6, 2026 | 07:02 am
TEMPO.CO, Jakarta - Indonesia and Saudi Arabia have signed a Memorandum of Understanding (MoU) on Cooperation and Promotion of Direct Investment to elevate bilateral economic relations and facilitate cross-border capital flows.
The agreement was signed on Tuesday (August 4) by Indonesian Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani and Saudi Arabian Minister of Investment Fahad bin Abduljalil Al-Saif.
According to Minister Rosan, Indonesia and Saudi Arabia share a close relationship built on mutual trust, respect and long-standing people-to-people ties.
This partnership is now expanding into various strategic investment cooperation to generate concrete economic benefits for both nations, Rosan said in his statement on Wednesday (August 5).
Between 2021 and the first half of 2026, the Ministry of Investment recorded that Saudi Arabia's realized Foreign Direct Investment (FDI) in Indonesia reached US$126.2 million.
Rosan noted that shifts in the global economic landscape are prompting nations to forge resilient partnerships, as modern investors prioritize market stability, regulatory certainty and long-term prospects over mere cost efficiency.
"Saudi Arabia is driving its Vision 2030 modernization agenda, while Indonesia is accelerating industrialization, downstreaming, infrastructure development and economic transformation. This shared trajectory opens substantial opportunities for strategic collaboration," he stated.
Under the terms of the MoU, both countries agreed to strengthen direct investment cooperation by sharing statistical data, exchanging investment information, and updating regulatory frameworks.
The partnership also outlines mechanisms for private-sector consultations, joint investment promotion campaigns, expert delegation exchanges, and technical knowledge sharing.
Furthermore, it serves as a platform for strengthening institutional coordination between the investment authorities of both countries.
Rather than the signing itself, Rosan emphasized that the agreement's true success will be measured by its concrete implementation—generating various new investment, expanding business partnerships, creating jobs, and delivering tangible prosperity to the people of both nations.
"Indonesia is open to investment. Indonesia is committed to reform. We welcome investments that create added value, encourage knowledge transfer, develop industry, and generate shared prosperity," Rosan concluded.
Read: Saudi Arabia Calls for Multinational Maritime Defense Coalition
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