JEDDAH, Saudi Arabia | July 3, 2025 – In a landmark diplomatic move, Indonesian President Prabowo Subianto and Saudi Crown Prince Mohammed bin Salman formalized a series of agreements worth approximately $27 billion during a high-profile meeting at Al-Salam Palace in Jeddah on July 2, 2025. The accords, spanning clean energy, petrochemicals, and investment, underscore a deepening strategic partnership between the two nations.

The centerpiece of the visit was the establishment of a new Indonesia-Saudi Arabia Supreme Coordination Council, formalized through a signed Minutes of Meeting. This council, modeled after Saudi Arabia’s strategic frameworks with the U.S. and China, aims to enhance governance and coordination in bilateral relations. The move builds on a 75-year diplomatic relationship that began on May 1, 1950, rooted in shared Islamic heritage—Indonesia as the world’s most populous Muslim-majority nation and Saudi Arabia as Islam’s birthplace.
Economic ties are a key focus, with bilateral trade reaching nearly $6 billion in 2008, heavily favoring Saudi Arabia due to its oil and gas exports. Indonesia contributes plywood, textiles, apparel, palm oil, paper, and tires to the exchange. The new agreements are expected to boost collaboration between private sectors, further balancing this trade dynamic.
Humanitarian cooperation also took center stage. The leaders pledged to strengthen synergy in delivering aid, building on Indonesia’s precedent of sending relief to Gaza in November 2023 amid the Israel-Hamas conflict. They committed to supporting recovery efforts for Palestinians, emphasizing a shared goal of promoting global peace and stability.
Labor issues remain a critical aspect of the partnership. Saudi Arabia hosts around 600,000 Indonesian migrant workers, predominantly in the domestic sector, where reports of abuse have persisted. This visit follows Indonesia’s recent move to lift a decade-long moratorium on sending workers to Saudi Arabia, with a memorandum of understanding signed in March 2025 to ensure stricter labor protections.
President Prabowo, greeted with a guard of honor, described the visit as a reaffirmation of mutual commitment. “This partnership will pave the way for prosperity and stability,” he stated. The agreements signal Indonesia’s rising stature in regional diplomacy, aligning its interests with one of the Middle East’s most influential economies.
As discussions continue, the newly formed council is poised to guide future collaborations, with both nations eyeing long-term growth in energy, investment, and humanitarian outreach.