A Saudi delegation is scheduled to arrive in Jakarta on Thursday, 23 October 2025, for high-level talks between the Indonesian government and the Kingdom of Saudi Arabia. The meeting will be led by Indonesia's Public Works (PUPR) Minister, Dody Hanggodo, and will explore cooperation across infrastructure, water management and clean energy -- part of Indonesia's support for Saudi Arabia's hosting of the 11th World Water Forum in Riyadh in 2027.
For Indonesia, this marks more than a diplomatic courtesy: it opens a new chapter in green industrial diplomacy. The nation remains heavily dependent on coal for power; meeting its targets for a 34 per cent renewable energy share by 2030 and net-zero emissions by 2060 demands larger and diversified partnerships. At the same time, Middle East and North Africa (MENA) countries are aggressively repositioning themselves from fossil-fuel exporters to clean-energy investors. A strategic alliance between Indonesia and this region could reshape the future of energy and industry in the Global South.
MENA countries such as the United Arab Emirates and Qatar have already made inroads in Indonesia's green sector. For example, Gulf sovereign-wealth capital and clean-energy players are active in Indonesian solar and renewables. These Gulf investments provide a solid springboard for deeper cooperation -- not just in financing, but in co-developing supply chains and manufacturing capacity. Such engagement would reduce Indonesia's heavy reliance on China, which currently receives over 80 per cent of Indonesia's nickel exports and controls about 75 per cent of Indonesian nickel smelters -- a concentration that undermines price stability and industrial leverage.
The Saudi visit is timely. In July 2025 Indonesia and Saudi Arabia signed agreements worth around US $27 billion covering clean energy, petrochemicals and downstream industries. Indonesia should use the October meeting to convert high-level pledges into an actionable roadmap -- one anchored in green industrial policy, not just extractive trade. The PUPR-led-project proposals (including an irrigation infrastructure project, two hydroelectric plants and a mini-power plant under the 2025-2029 strategic plan) offer ripe entry points for Saudi investment via vehicles like the Saudi Fund for Development (SFD) and the Public Investment Fund (PIF).
But investment is only one piece of the puzzle. Indonesia must simultaneously strengthen its industrial and policy foundations. Its domestic renewable-manufacturing sector remains embryonic -- especially in solar-panel components and energy storage. MENA countries, particularly the UAE and Egypt, have advanced experience in localising renewables supply chains; partnering through joint-ventures would allow Indonesia to leap-frog cheaper imports and build home-grown capacity. Morocco's solar-EV industrial push is another instructive model for Jakarta.
READ: IOC expresses 'concern' over Indonesian ban on Israeli athletes due to genocide in Gaza
Collaboration should also extend beyond generation to sustainable urban infrastructure. Saudi Arabia's NEOM and the UAE's Masdar City showcase integrated, low-carbon city planning -- offering valuable insights for developing green architecture, renewable-based grids, and water-sensitive design where Gulf expertise can bring significant value.
Still, MENA-Indonesia cooperation will only advance if Jakarta creates the right conditions. Ratification of the new and renewable energy law (EBET) is urgent. Creating rules for power-wheeling, allowing private renewables to sell into the grid, will help attract foreign participation. Mobilising Islamic finance -- for example, green sukuk drawing MENA investors into Indonesian projects -- is another vital enabler. Equally important is empowering regional governments in resource-rich provinces such as Sulawesi and West Nusa Tenggara to engage directly in partnerships.
The MENA region's transition from oil to renewables and Indonesia's battle to move beyond coal are two sides of the same global shift. Both are addressing similar structural challenges -- redefining their economic futures in a decarbonised world. By working together, they can craft a new model of South-South cooperation: one based on industrial development, technology transfer and shared prosperity -- not just extractive trade or donor/recipient dynamics.
Oil once tied Asia and the Middle East in a one-way flow of energy and influence. The next era could bind them again -- this time through solar panels, battery factories and nickel processing plants -- as partners in the building of a sustainable global economy.
OPINION: Indonesia and Iraq: Quiet contacts, modest openings