Indonesia-Saudi Arabia Trade Decreased in 2015-2016

Indonesian trade with Saudi Arabia declined continuously from 2015 to 2016. Trade between Indonesia and Saudi Arabia fell by 26 percent to US$4.01 billion in 2016 from the previous year. Similarly, in 2015, trade between the two countries also decreased by 36.79 percent to US$5.48 billion, down from US$8.67 billion in 2014.

The fall in crude oil prices from mid-2014 to the first quarter of 2016 was one of the factors contributing to the decline in Indonesian trade with Saudi Arabia. The increase in fuel prices (BBM) under President Joko Widodo's administration led to a decrease in Indonesia's oil imports, coupled with a simultaneous drop in oil prices. Furthermore, the slump in the Saudi Arabian economy due to the decline in global oil prices also suppressed trade between the two countries.

The entourage of the King of Saudi Arabia, Salman bin Abdulaziz Al Saud, numbering approximately 1,500 people, is scheduled to arrive in Jakarta today. King Salman's visit to Indonesia is expected to serve as an opportunity to negotiate and increase Indonesian trade with Saudi Arabia. As is known, Indonesia has consistently experienced a trade deficit with Saudi Arabia.