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Saudi-Indonesia ties reach new heights

October 04, 2017



On this solemn occasion, it is our great pleasure to extend our warmest congratulations and best wishes to the Kingdom of Saudi Arabia, to Custodian of the Two Holy Mosques King Salman, the Crown Prince Muhammad Bin Salman and most importantly, to the people of Saudi Arabia. We wish a great and productive future for the Kingdom and its people.

We commend the great strides undertaken as part of the Saudi Vision 2030 to become the heart of the Arab and Islamic worlds, the investment powerhouse, and the hub — connecting three continents. We have seen many changes and vast improvements under the Vision. The latest important milestone was the Royal Decree on letting women drive by the month of Shawwal 1439 H or June 2018.

This will bring about social and cultural improvement in Saudi society, especially for women and will have positive impact on the Kingdom’s economy.

We would also like to reiterate our gratitude to King Salman for his historic visit in March 2017, first by a king in 47 years, which strengthened the bilateral relations between the two countries. The world could see the joy and the warm welcome the Indonesian people extended to the King Salman during his visit and how much we love the Custodian of the Two Holy Mosques.

The visit has brought people of the Kingdom of Saudi Arabia and the people of the Republic of Indonesia closer. There have been strong historic and cultural ties between the two countries, however, there are many potentials yet to be unlocked to enhance prosperous relations in the future, and the visit provided the key and the bridge for both nations.

There were 11 memorandums of understanding signed during the King’s visit to Indonesia. From trade, economic and investment, to social and cultural agreements, to religions and counter terrorism acts were addressed.

For its part, the Consulate General of the Republic of Indonesia has strong commitments to make use of the platforms and initiate potential cooperation under the Vision 2030, especially in the fields of economic, trade, investment as well as social and cultural relations.

In facts, we already have seen many improvements on the ground this year. With the royal kindness, blessing and generosity, Indonesian Haj pilgrims made the largest contingent during the 1438 H Haj session with more than 221,000 pilgrims, a historical number even for our own country. We also have seen an increase in regular visits and Umrah pilgrims to the Kingdom. This year the number has reached to approximately 1 million, an increase of 20 percent as compared to 2016. At this pace, we will have more than 1.2 million Indonesian visitors to Saudi in year 2018 and more than 3 million people in 2030.

In reverse, we also have seen a steady increase in the number of Saudi visitors to Indonesia, the last two years shows an increase of 12 to 16 percent. In year 2016 the number has reached 186,700 visitors and this year hopefully that number will reach 200,000, as the King’s historical visit opened many eyes about Indonesia and the free visa-entry made it easier for Saudis to visit Indonesia. The Ministry of Tourism of Indonesia has created the King Salman routes and Halal tourism to cater Saudis visitors. By next year, 2018 more flights and carriers will serve routes to each country.

The vast people to people contact and frequent visits of Indonesians to Saudi Arabia also create cultural and economic opportunities. One that the Consulate General has constantly provided is the Bahasa Indonesia language program. It helps many Saudis, especially businessmen and Haj and Umrah operators communicate better with their clients. Bahasa Indonesia has become one of the most used business languages in the Kingdom of Saudi Arabia.

In term of trade and investment, during the span of 2014-2015, the trade volume between the two countries has lowered to 36 percent. This happened due to the fall of oil prices but the year 2016 and 2017 shows the trades are in uptrends with $2 million in 2016 and hopefully the number will increase to $2.4 million by the end of 2017. There is an increase of trade between two countries in non-oil and gas sector. Indonesia has recorded positive trend from $468 million in 2016 to $532.5 million as of April 2017.

In order to increase the trade and investment between two countries, the Consulate General invites all Saud businessmen to participate in the 32nd Trade Expo Indonesia on 11 to 15 October 2017 in BSD City, Greater Jakarta.

Last year, Trade Expo Indonesia successfully attracted 15.567 visitors from 110 countries, and generated in total trade transactions valued at $1.07 billion. There were 93 delegations from Saudi Arabia, and this year the number of interested parties is more than 100 Saudi business groups.

Saudi businessman showing interests in vast area of products such as food and beverages, wood based products, pulp and paper, furniture, home décor, textile and product textile, building material, Medical equipment, Industrial Pharmacy product and Medicine, Vaccines, coffee, tea and fisheries products.

In 2016, Indonesian tire producer Achiles Ltd. and Bin Sihon agreed to export tires to Saudi Arabia that worth more than $22 million. In the first quarter of 2017, an Indonesian State owned pharmacy company, Kimia Farma made a deal to distribute its products in Saudi with Dawaa company.

The biggest rises of Indonesian exports to Saudi is fisheries products. From January to July 2017 the transaction is netting $2.7 million a major jump from 2012, $0.8 million.

The Government of Indonesia hopes that more and more Saudi businessmen come to the TEI each year so both countries can gain the economical beneficiaries through business-to-business contacts.

During the World Halal Tourism Award on Dec. 7, 2016 in Abu Dhabi, Indonesia won 12 awards in total 16 categories. This includes the world best airline for Halal Traveler by Garuda Indonesia; Best Halal Beach Resort in Novotel Lombok Resorts; and World’s Best Halal Honeymoon Destination in Sembalun Village Region, Lombok, Nusa Tenggara Barat. Along with Lombok, Aceh and West Sumatera are Indonesian regions winning the awards.


October 04, 2017
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