Saudi Arabia, Indonesia Sign Deal On Mineral Exploration, Mining

JAKARTA: Saudi Arabia and Indonesia signed a preliminary agreement to enhance cooperation in the mining and minerals sector during Industry and Mineral Resources Minister Bandar Al-Khorayef’s visit to Jakarta on Thursday.

Indonesia holds the world’s largest nickel reserves and has rich deposits of other minerals, including copper and bauxite. In 2023, its mining sector accounted for about 11.9 percent of the country’s gross domestic product. 

Al-Khorayef arrived in the Indonesian capital for a three-day visit on Tuesday for meetings with both officials and top industry executives. 

On Thursday, he signed a memorandum of understanding with Energy and Mineral Resources Minister Bahlil Lahadalia to boost partnerships in the mining sector, which covers exchange of expertise and knowledge transfer between the two countries.  

“The agreement aims to strengthen strategic cooperation and exchange of expertise between the two countries in the mining and minerals sector,” Saudi Arabia’s Ministry of Industry and Mineral Resources said in a statement. 

“This includes the exchange of expertise and knowledge transfer in the fields of mineral exploration, extraction, geological surveying, sustainable mining practices, modern mining technologies, evaluation of mineral resources, and the development of mining industries and mineral materials.”

Al-Khorayef’s visit aims to attract more investment to the Kingdom and explore mutual investment opportunities in mining, food, pharmaceuticals and auto parts industries, in line with Saudi Vision 2030.

His various meetings in Jakarta included talks with Indonesia’s Industry Minister Agus Gumiwang Kartasasmita and State-Owned Enterprises Minister Erick Thohir, as well as senior officials from Indonesia’s state-owned mining industry holding company, MIND ID, state-owned pharmaceutical firm Bio Farma, and one of the world’s largest instant noodle makers, Indofood. 

Indonesia is also keen to forge closer workforce cooperation, as Al-Khorayef and his delegation visited a training center unit under the Ministry of Industry on Thursday. 

“We are ready to support the sending of skilled workers … to fulfill the workforce needs in Saudi Arabia,” Masrokhan, who heads the ministry’s Industrial Human Resources Development Agency, said in a statement. 

During his trip, Al-Khorayef also witnessed the signing of a preliminary agreement between the Saudi Export-Import Bank and its Indonesian counterpart, aimed at strengthening economic and trade relations between the two countries. 

Trade and investment relations between Saudi Arabia and Indonesia have been on the rise. Non-oil trade was worth about $3.3 billion in 2024, showing a 14.5 percent increase compared to 2020.