Indonesia and Kuwait Strengthen Energy Security Cooperation

Indonesia and Kuwait are strengthening cooperation in the energy security sector as an effort to confront ongoing global geopolitical and economic uncertainty. The commitment emerged during a meeting between Coordinating Minister for Economic Affairs Airlangga Hartarto and Kuwaiti Ambassador to Indonesia Khalid Jassim Alyassin in Jakarta. “Indonesia and Kuwait have diplomatic relations with a strong foundation. This is important in expanding bilateral cooperation. Both countries agreed to continue working together on energy security amid geopolitical uncertainty,” Airlangga said in a statement in Jakarta on Friday. Energy cooperation between the two countries has been ongoing through a number of strategic projects. One of these is the involvement of the Kuwait Foreign Petroleum Exploration Company (KUFPEC) in eight oil and gas exploration activities in Indonesia. The eight oil and gas exploration projects are located on Buton Island, in the Natuna Sea, and in East Kalimantan. The KUFPEC Indonesia BV consortium is also conducting oil and gas exploration in the Anambas region. Collaboration in the energy sector was strengthened through a Memorandum of Understanding on Oil, Gas and Petrochemical Cooperation agreed in 2019. In addition to energy cooperation, Indonesia and Kuwait have also agreed on several other Memoranda of Understanding, 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. Both parties also agreed to encourage the acceleration of the completion of the Indonesia-GCC Free Trade Agreement negotiations, which are targeted to be finalised by the end of 2026. Indonesia and Kuwait’s economic relationship is also showing a positive trend. In 2025, total trade between the two countries increased by 10.69 percent to 606 million US dollars, from 547.5 million US dollars in 2024. Meanwhile, Kuwaiti investment in Indonesia rose from 290,000 US dollars in 2024 to 1.2 million US dollars in 2025, dominated by the oil and gas sector.