Airlangga Meets Kuwaiti Ambassador, Discusses KUFPEC Oil and Gas Exploration in Indonesia

Coordinating Minister for Economic Affairs Airlangga Hartarto met with the Ambassador of Kuwait to Indonesia, Khalid Jassim Alyassin, in Jakarta recently. The meeting focused on strengthening cooperation in trade, investment, and energy. In the energy sector, Kuwait Foreign Petroleum Exploration Company (KUFPEC) is involved in eight oil and gas exploration activities in Indonesia, including in Buton Island, the Natuna Sea, and East Kalimantan. “The KUFPEC Indonesia BV consortium has also carried out oil and gas exploration in the Anambas region,” Airlangga stated. Energy sector cooperation between Indonesia and Kuwait has been well-established through a Memorandum of Understanding (MoU) on Oil, Gas, and Petrochemical Cooperation agreed upon in 2019. Beyond energy, the two nations have also agreed on several other MoUs, including an MoU on the Establishment of a Joint Commission, an MoU on Economic and Technical Cooperation from 2007, and an MoU on Trade Cooperation from 2007. “The various MoUs held by both countries demonstrate the significance of Indonesia’s role for Kuwait, particularly in the economic field,” said Ambassador Khalid. Minister Airlangga and Ambassador Khalid committed to overseeing the implementation of these MoUs to ensure they provide optimal benefits for energy security and bilateral relations. Furthermore, both parties agreed to push for the acceleration of the Indonesia-Gulf Cooperation Council (GCC) Free Trade Agreement negotiations, which are targeted for completion by the end of 2026. Economic relations between Indonesia and Kuwait are showing a positive trend. In 2025, total trade between the two countries increased by 10.69% to USD 606 million, up from USD 547.5 million in 2024. Meanwhile, Kuwaiti investment in Indonesia rose from USD 290,000 in 2024 to USD 1.2 million in 2025, dominated by the oil and gas sector. “Indonesia and Kuwait have diplomatic relations built on a strong foundation. This is important for expanding bilateral cooperation. Both countries agree to continue working together on energy security amidst geopolitical uncertainty,” Airlangga remarked. This was the second meeting between the two, following their first encounter during the presentation of Ambassador Khalid’s Letter of Credence to President Prabowo in November 2025.