Saudi Arabia Invests IDR 10 Thousand T in US, RI Only IDR 50 Billion
The United States (US) is showered with trillions of investment from Saudi Arabia. However, the opposite condition is happening in Indonesia.
The profit of tens of trillions for the United States (US) is very good news for the US, after the Crown Prince of Saudi Arabia, Mohammed Bin Salman, announced an investment plan of US$600 billion or around Rp9,900 trillion (exchange rate of Rp16,500/US$) or almost Rp10,000 trillion over the next four years.
Reporting from Reuters, during his visit, Trump invited a number of influential US business leaders, one of whom was Tesla founder, Elon Musk.
Not only that, Trump also invited Blackrock CEO Larry, Citigroup, IBM, Boeing, Delta Airlines, American Airlines, and United Airlines.
Trump hopes to secure trillions of dollars in investment from Gulf oil producers. Saudi Arabia has promised US$600 billion but Trump said he wants US$1 trillion from Saudi, one of Washington's most important allies.
Trump announced that Saudi Arabia has committed to investing US$600 billion in the United States, spanning strategic sectors such as defense, energy, technology, infrastructure, and health.
This agreement marks a new era in relations between the US and Saudi Arabia, strengthening economic and security cooperation that has existed for more than eight decades since the meeting between King Abdulaziz Al Saud and President Franklin D. Roosevelt.
Saudi Arabia's Investment in Indonesia
Saudi Arabia has met with the Indonesian government several times to discuss its investment in the country.
In May 2023, Former Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia met with Saudi Arabia's Minister of Investment, Khalid A. Al-Falih in Riyadh, Saudi Arabia.
This meeting was the first between the Investment Ministers of the two countries. The meeting discussed cooperation related to investment between the two countries, especially in terms of renewable energy and hospital construction.
Khalid appreciated Indonesia's efforts in carrying out economic transformation through downstreaming of natural resources, thereby reducing dependence on raw commodities. The two ministers also agreed that investment cooperation between the two countries is still not in accordance with the existing potential and can be improved.
Previously in 2019, there was certainty of investment for the Cilacap refinery development project which was still gray, even though Saudi Aramco had expressed its interest in the project long ago.
At that time, Saudi Aramco promised to invest up to US$ 6 billion or around Rp84 trillion with several requirements, one of which was to get incentives such as tax holidays, land, and transfer of assets to subsidiaries.
The latest news about Saudi Arabia and Indonesia is about the construction of an Indonesian village for hajj and umrah pilgrims.
According to the President of the Republic of Indonesia, Prabowo Subianto, the Indonesian Village will be built close to the Grand Mosque. According to Prabowo, this was welcomed positively by MBS.
"His reaction at that time was quite positive. He said 'let's plan it technically well'," said Prabowo.
Saudi Arabian Investment Based on BKPM Data
Data from the Investment Coordinating Board (BKPM), Saudi Arabia routinely realizes investment in Indonesia. However, what is of concern is that the amount invested has not increased consistently and even tends to be unstable.
In 2024, Saudi Arabia's investment realization in Indonesia was US$3.2 million (Rp. 52.8 billion) or down from 2023 which was US$7.15 million. Saudi Arabia only ranks 66th out of all foreign investors in Indonesia.
As a comparison, the country with investment in Singapore is ranked first, reaching US$20 billion.
If we look further, Saudi Arabia's investment in Indonesia is spread across many sectors. Starting from the primary, secondary, to tertiary sectors.
Some of the names of the sectors invested by Saudi Arabia are Food Crops, Plantations, and Livestock, Paper and Printing Industry, Chemical and Pharmaceutical Industry, and so on. (Af)
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