What are the Trends in Saudi Arabian Investment in Indonesia?

The Indonesian Investment Coordinating Board (BKPM) recorded that Saudi Arabian investment realization in Indonesia over the past five years only reached US$34.6 million (approximately Rp467 billion). Investment from Saudi Arabia surged significantly in 2015, reaching US$30.4 million (approximately Rp410 billion). However, this figure plummeted drastically in 2016 to US$900,000 (approximately Rp12.1 billion).

In recent years, Saudi Arabian investment in Indonesia has focused on the basic chemical industry, chemical goods, and pharmaceuticals. Besides the industrial sector, Saudi Arabia has also invested in tourism (hotels and restaurants); trade and repair; mining; housing, industrial estates, and offices; and other service sectors.

King Salman bin Abdulaziz of Saudi Arabia will be visiting several Asian countries, including Indonesia, Malaysia, China, and Japan. The Head of the Indonesian Investment Coordinating Board (BKPM), Thomas Trikasih Lembong, stated that during a meeting with President Joko Widodo (Jokowi), King Salman will discuss several matters, including investment plans in the energy sector.