Saudi Arabia's Investment in Indonesia Lags Behind Singapore's

Saudi Arabia's investment in Indonesia lags significantly behind that of Singapore. Data from the Investment Coordinating Board (BKPM) shows that Saudi Arabian foreign investment in 2016 reached only US$0.9 million, or approximately Rp 11.9 billion, out of a total foreign investment in Indonesia of US$28.96 billion. Meanwhile, foreign investment from Singapore reached US$9.18 billion, or approximately Rp 122 trillion.

Singapore is the largest source of foreign direct investment (FDI) into Indonesia. Japan is second with US$5.4 billion, followed by China in third place with US$2.6 billion. Saudi Arabia's foreign investment in 2016 ranked 57th.

King Salman bin Abdulaziz Al Saud's visit to several Asian countries, including Indonesia, presents an opportunity to negotiate increased Saudi Arabian investment. One item on the agenda is the signing of an investment agreement for Saudi Aramco's expansion of the Cilacap oil refinery project, valued at US$6 billion. Several other contracts totaling US$1 billion are also anticipated.