Saudi Chambers Federation Forms Saudi-Indonesian Business Council

The Federation of Saudi Chambers (FSC) has announced the final formation of the Saudi-Indonesian Business Council for its new term 1445-1449 AH, appointing Ayman Amin Sejiny as chairman and Saleh Abdullah Al-Qabaa and Osama Abdullah Qoqandi as vice-chairmen, according to the Saudi Press Agency (SPA). The council aims to strengthen economic ties between Saudi Arabia and Indonesia, two influential G20 economies, and to capitalize on promising investment opportunities within the framework of Saudi Vision 2030.

Context and Background

The establishment of the Saudi-Indonesian Business Council comes at a time of growing economic cooperation between the Kingdom and Indonesia. Both nations are members of the G20 and have been actively seeking to expand bilateral trade and investment. The council’s formation for the term 1445-1449 AH aligns with Saudi Arabia’s broader strategy to diversify its economy and foster international partnerships under Vision 2030. Indonesia, with its large and growing economy, presents a significant market for Saudi exports and a promising destination for Saudi investment.

Key Details

Ayman Amin Sejiny, the newly appointed chairman of the council, emphasized the importance of the business council in seizing investment opportunities. “The Kingdom and Indonesia are influential economic powers within the G20, which enhances the importance of the business council in seizing promising investment opportunities within the framework of the Saudi Vision 2030, which provides a solid foundation for increasing economic cooperation between the two countries,” Sejiny said. He noted that the trade volume between the two countries in the first three quarters of 2022 amounted to approximately SAR23.4 billion, with Saudi exports to Indonesia having increased by 61 percent. The council will focus on sectors that offer cooperation and investment opportunities, including industry, agriculture, trade, tourism, healthcare, labor, date exports, logistics services, and the food industry.

Implications and Impact

The formation of the Saudi-Indonesian Business Council is expected to have significant implications for both economies. It will facilitate increased trade flows, joint ventures, and knowledge sharing. For Saudi Arabia, it opens avenues for non-oil exports and investments, supporting economic diversification. For Indonesia, it provides access to Saudi capital and expertise in various sectors. The council’s work will complement government-level efforts to strengthen bilateral relations, which have been marked by high-level visits and agreements in recent years. The focus on sectors such as healthcare and logistics also aligns with broader regional trends in post-pandemic recovery and supply chain resilience.

Vision 2030 Alignment

The Saudi-Indonesian Business Council is a direct reflection of Vision 2030’s goal to expand the Kingdom’s international economic partnerships and increase non-oil exports. By targeting key sectors such as industry, tourism, and logistics, the council supports the diversification of the Saudi economy and the creation of new opportunities for Saudi businesses and investors. This initiative underscores Saudi Arabia’s commitment to playing a leading role in global economic affairs and to building mutually beneficial relationships with dynamic economies like Indonesia.

20 Questions

Q1. What is the Saudi-Indonesian Business Council?

A1. The Saudi-Indonesian Business Council is a bilateral business council formed by the Federation of Saudi Chambers to enhance economic cooperation and investment between Saudi Arabia and Indonesia. It was officially announced for the term 1445-1449 AH.

Q2. Who has been appointed as the chairman of the council?

A2. Ayman Amin Sejiny has been appointed as the chairman of the Saudi-Indonesian Business Council. He will lead the council’s efforts to strengthen economic ties between the two G20 nations.

Q3. Who are the vice-chairmen of the council?

A3. Saleh Abdullah Al-Qabaa and Osama Abdullah Qoqandi have been appointed as vice-chairmen of the council. They will support the chairman in achieving the council’s objectives.

Q4. When was the formation of the council announced?

A4. The formation was announced in Riyadh on July 10, 2024, according to the Saudi Press Agency. The council is formed for the term 1445-1449 AH.

Q5. What is the significance of both countries being G20 members?

A5. As G20 members, Saudi Arabia and Indonesia are influential economic powers. This status enhances the importance of the business council in seizing promising investment opportunities and increasing economic cooperation.

Q6. What was the trade volume between Saudi Arabia and Indonesia in the first three quarters of 2022?

A6. The trade volume reached approximately SAR23.4 billion. Saudi exports to Indonesia increased by 61 percent during that period, reflecting growing economic ties.

Q7. Which sectors will the council focus on?

A7. The council will focus on industry, agriculture, trade, tourism, healthcare, labor, date exports, logistics services, and the food industry. These sectors offer significant opportunities for cooperation and investment.

Q8. How does the council align with Saudi Vision 2030?

A8. The council supports Vision 2030 by promoting economic diversification, increasing non-oil exports, and fostering international partnerships. It provides a solid foundation for enhancing cooperation between Saudi Arabia and Indonesia.

Q9. What are the expected benefits for Saudi Arabia?

A9. Saudi Arabia expects to benefit through increased non-oil exports, investment opportunities, and access to Indonesia’s growing market. The council also facilitates knowledge sharing and joint ventures in key sectors.

Q10. What are the expected benefits for Indonesia?

A10. Indonesia stands to gain from Saudi investment, capital inflow, and expertise in sectors such as healthcare, logistics, and food industry. The council also opens doors for Indonesian exports to the Saudi market.

Q11. How does the council plan to facilitate investment?

A11. The council will identify and promote investment opportunities, organize business forums, and facilitate partnerships between Saudi and Indonesian companies. It will also advocate for policies that ease trade and investment flows.

Q12. What role does the Federation of Saudi Chambers play?

A12. The Federation of Saudi Chambers represents the private sector and facilitates the formation of bilateral business councils. It supports Saudi businesses in expanding internationally and enhancing economic diplomacy.

Q13. Are there any specific agreements or MoUs signed?

A13. The announcement did not mention specific agreements or MoUs. However, the council’s formation itself is a step toward facilitating future agreements and partnerships between the two countries.

Q14. How does this council compare to other Saudi business councils?

A14. The Saudi-Indonesian Business Council is part of Saudi Arabia’s network of bilateral business councils. It follows the same model of promoting trade and investment, but focuses specifically on Indonesia, a key G20 economy.

Q15. What is the expected impact on Saudi date exports?

A15. The council will focus on date exports as one of its sectors. This could lead to increased market access for Saudi dates in Indonesia, boosting agricultural trade and supporting Saudi farmers.

Q16. How will the council address labor and healthcare cooperation?

A16. The council will facilitate collaboration in labor and healthcare by promoting exchange of expertise, training programs, and investment in healthcare infrastructure. This can improve services and create jobs.

Q17. What is the timeline for the council’s activities?

A17. The council is formed for the term 1445-1449 AH (approximately 2024-2028). It will operate throughout this period to achieve its objectives and report on progress.

Q18. How can businesses from both countries engage with the council?

A18. Businesses can engage through the Federation of Saudi Chambers or the Indonesian counterpart. The council will likely provide contact points and organize events for networking and partnership development.

Q19. What are the long-term goals of the council?

A19. The long-term goals include deepening economic integration, increasing bilateral trade and investment, and contributing to the sustainable development of both nations in line with Vision 2030 and Indonesia’s economic goals.

Q20. How does this council reflect Saudi Arabia’s global economic engagement?

A20. The council exemplifies Saudi Arabia’s proactive approach to global economic engagement, building partnerships with key economies like Indonesia. It showcases the Kingdom’s leadership in fostering international cooperation and economic growth.

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