United States Secures Trillions in Saudi Arabian Investment as Indonesia Lags Behind
Jakarta, CNBC Indonesia - The United States is awash with thousands of trillions of rupiah in investment from Saudi Arabia, whilst the opposite is occurring in Indonesia.
The latest windfall has come to the United States after Saudi Crown Prince Mohammed Bin Salman announced an investment plan worth US$600 billion, or approximately Rp9,900 trillion (at an exchange rate of Rp16,500/US$), over the next four years.
According to Reuters, during his visit, Trump brought along a number of influential US business leaders, including Tesla founder Elon Musk. Trump also invited BlackRock CEO Larry Fink, as well as leaders from 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 pledged US$600 billion, but Trump said he wants US$1 trillion from Saudi Arabia, one of Washington's most important allies.
US President Donald Trump announced that Saudi Arabia has committed to investing US$600 billion in the United States, spanning various strategic sectors including defence, energy, technology, infrastructure, and healthcare.
**Key Sectors and Strategic Projects**
**Artificial Intelligence and Energy Infrastructure:** Saudi company DataVolt will invest US$20 billion to build AI data centres and energy infrastructure in the US.
**Technology Partnerships:** Companies such as Google, Oracle, Salesforce, AMD, and Uber will collaborate on US$80 billion worth of technology projects in both countries.
**US Infrastructure Exports:** American firms including Hill International, Jacobs, Parsons, and AECOM will be involved in major projects in Saudi Arabia, including King Salman International Airport and Qiddiya City, with a total services export value of US$2 billion.
**Energy and Transport:** GE Vernova will export gas turbines worth US$14.2 billion, and Boeing will sell 737-8 aircraft worth US$4.8 billion to AviLease.
**Healthcare:** Shamekh IV Solutions will invest US$5.8 billion to build intravenous fluid production facilities in Michigan.
**Thematic Investment Funds:** These include an Energy Investment Fund (US$5 billion), a New Era Defence and Aerospace Technology Fund (US$5 billion), and the Enfield Global Sports Fund (US$4 billion), all focused on developing US industry and creating jobs.
The agreement marks a new era in US-Saudi relations, strengthening economic and security cooperation that has endured for more than eight decades since the meeting between King Abdulaziz Al Saud and President Franklin D. Roosevelt.
**Saudi Arabian Investment in Indonesia**
Saudi Arabia has met with the Indonesian government on numerous occasions to discuss investment in the country. In May 2023, former Investment Minister and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, met with Saudi Investment Minister Khalid A. Al-Falih in Riyadh. This was the first meeting between the two countries' investment ministers.
The meeting discussed investment cooperation between the two nations, particularly in renewable energy and hospital construction. Khalid expressed appreciation for Indonesia's economic transformation efforts through downstream processing of natural resources, reducing dependence on raw commodities. Both ministers agreed that investment cooperation between the two countries had not yet matched its potential and could be further enhanced.
Previously in 2019, there was uncertainty surrounding investment for the Cilacap refinery development project, despite Saudi Aramco having expressed interest well in advance. At that time, Saudi Aramco pledged to invest up to US$6 billion, or approximately Rp84 trillion, subject to several conditions, including receiving incentives such as tax holidays, land, and the transfer of assets to a subsidiary.
The latest news regarding Saudi Arabia and Indonesia concerns the construction of an Indonesian village (Kampung Indonesia) for hajj and umrah pilgrims. According to President Prabowo Subianto, the Indonesian Village will be built near the Grand Mosque (Masjidil Haram). Prabowo said this was positively received by MBS. "His reaction at the time was quite positive. He said, 'let us plan it well technically'," Prabowo stated.
**Saudi Arabian Investment Based on BKPM Data**
According to data from the Investment Coordinating Board (BKPM), Saudi Arabia routinely makes investment realisations in Indonesia. However, what is notable is that the amounts invested have not risen consistently and have tended to be unstable.
In 2024, Saudi Arabian investment realisation in Indonesia amounted to US$3.2 million (Rp52.8 billion), down from US$7.15 million in 2023. Saudi Arabia ranked only 66th among all foreign investors in Indonesia. By comparison, Singapore, ranked first, invested over US$20 billion.
Looking more closely, Saudi Arabian investment in Indonesia is spread across numerous sectors, from primary to secondary and tertiary. Sectors receiving Saudi investment include food crops, plantations and livestock, paper and printing industries, chemical and pharmaceutical industries, among others.
The latest windfall has come to the United States after Saudi Crown Prince Mohammed Bin Salman announced an investment plan worth US$600 billion, or approximately Rp9,900 trillion (at an exchange rate of Rp16,500/US$), over the next four years.
According to Reuters, during his visit, Trump brought along a number of influential US business leaders, including Tesla founder Elon Musk. Trump also invited BlackRock CEO Larry Fink, as well as leaders from 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 pledged US$600 billion, but Trump said he wants US$1 trillion from Saudi Arabia, one of Washington's most important allies.
US President Donald Trump announced that Saudi Arabia has committed to investing US$600 billion in the United States, spanning various strategic sectors including defence, energy, technology, infrastructure, and healthcare.
**Key Sectors and Strategic Projects**
**Artificial Intelligence and Energy Infrastructure:** Saudi company DataVolt will invest US$20 billion to build AI data centres and energy infrastructure in the US.
**Technology Partnerships:** Companies such as Google, Oracle, Salesforce, AMD, and Uber will collaborate on US$80 billion worth of technology projects in both countries.
**US Infrastructure Exports:** American firms including Hill International, Jacobs, Parsons, and AECOM will be involved in major projects in Saudi Arabia, including King Salman International Airport and Qiddiya City, with a total services export value of US$2 billion.
**Energy and Transport:** GE Vernova will export gas turbines worth US$14.2 billion, and Boeing will sell 737-8 aircraft worth US$4.8 billion to AviLease.
**Healthcare:** Shamekh IV Solutions will invest US$5.8 billion to build intravenous fluid production facilities in Michigan.
**Thematic Investment Funds:** These include an Energy Investment Fund (US$5 billion), a New Era Defence and Aerospace Technology Fund (US$5 billion), and the Enfield Global Sports Fund (US$4 billion), all focused on developing US industry and creating jobs.
The agreement marks a new era in US-Saudi relations, strengthening economic and security cooperation that has endured for more than eight decades since the meeting between King Abdulaziz Al Saud and President Franklin D. Roosevelt.
**Saudi Arabian Investment in Indonesia**
Saudi Arabia has met with the Indonesian government on numerous occasions to discuss investment in the country. In May 2023, former Investment Minister and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, met with Saudi Investment Minister Khalid A. Al-Falih in Riyadh. This was the first meeting between the two countries' investment ministers.
The meeting discussed investment cooperation between the two nations, particularly in renewable energy and hospital construction. Khalid expressed appreciation for Indonesia's economic transformation efforts through downstream processing of natural resources, reducing dependence on raw commodities. Both ministers agreed that investment cooperation between the two countries had not yet matched its potential and could be further enhanced.
Previously in 2019, there was uncertainty surrounding investment for the Cilacap refinery development project, despite Saudi Aramco having expressed interest well in advance. At that time, Saudi Aramco pledged to invest up to US$6 billion, or approximately Rp84 trillion, subject to several conditions, including receiving incentives such as tax holidays, land, and the transfer of assets to a subsidiary.
The latest news regarding Saudi Arabia and Indonesia concerns the construction of an Indonesian village (Kampung Indonesia) for hajj and umrah pilgrims. According to President Prabowo Subianto, the Indonesian Village will be built near the Grand Mosque (Masjidil Haram). Prabowo said this was positively received by MBS. "His reaction at the time was quite positive. He said, 'let us plan it well technically'," Prabowo stated.
**Saudi Arabian Investment Based on BKPM Data**
According to data from the Investment Coordinating Board (BKPM), Saudi Arabia routinely makes investment realisations in Indonesia. However, what is notable is that the amounts invested have not risen consistently and have tended to be unstable.
In 2024, Saudi Arabian investment realisation in Indonesia amounted to US$3.2 million (Rp52.8 billion), down from US$7.15 million in 2023. Saudi Arabia ranked only 66th among all foreign investors in Indonesia. By comparison, Singapore, ranked first, invested over US$20 billion.
Looking more closely, Saudi Arabian investment in Indonesia is spread across numerous sectors, from primary to secondary and tertiary. Sectors receiving Saudi investment include food crops, plantations and livestock, paper and printing industries, chemical and pharmaceutical industries, among others.