Indonesia and Kuwait Commit to Strengthening Energy Security and Trade

JAKARTA - The Indonesian and Kuwaiti governments have agreed to strengthen bilateral cooperation, especially in the energy, trade, and investment sectors. This agreement is considered important for facing global geopolitical and economic uncertainty. Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the government and Kuwait agreed to oversee the implementation of various existing memoranda of understanding (MoUs). He hopes this step will provide optimal benefits for energy security and bilateral relations between the two countries. “Both countries agreed to continue working together on energy security amidst geopolitical uncertainty,” he said. Airlangga noted that Indonesia-Kuwait relations have shown a positive trend. This is reflected in the trade value reaching US$606 million in 2025, up 10.6% compared to the 2024 figure of US$547.5 million. Furthermore, the value of Kuwaiti investment in Indonesia also increased from approximately US$290,000 in 2024 to US$1.2 million in 2025. This investment flow is dominated by the oil and gas sector. Airlangga noted that Kuwait has been actively investing in Indonesia’s oil and gas sector through the Kuwait Foreign Petroleum Exploration Company (KUFPEC). The company is involved in 8 oil and gas exploration activities, including on Buton Island, in the Natuna Sea, East Kalimantan, and the Anambas region through the KUFPEC Indonesia BV consortium. In addition, the foundation for Indonesia-Kuwait cooperation is already quite strong, as seen from a number of MoUs signed by the two countries. Examples include the MoU on oil, gas, and petrochemical cooperation (2019), the MoU on the establishment of a joint commission, the MoU on economic and technical cooperation (2007), and the MoU on trade cooperation (2007). Airlangga emphasised that the Indonesian and Kuwaiti governments also support accelerating the completion of the Indonesia-Gulf Cooperation Council Free Trade Area (I-GCC FTA) trade agreement. The plan is for the trade agreement negotiations to be held in the second half of 2026. It is hoped that this round of negotiations will be the final one to reach a substantive agreement. The government is targeting the negotiations to be completed by the end of 2026.