The initiative was delivered by Indonesian President`s Special Envoy for the Middle East and the Organization of Islamic Cooperation Alwi Shihab here, Tuesday, at a symposium aimed at increasing investment between Indonesia and Saudi Arabia through partnerships with East Asian countries.
"What we hope for from this symposium is to bring together big capital -- Saudi Arabia, Japan, South Korea, and China -- and in what area can cooperation be forged with Indonesia," Shihab informed several journalists.
China, Japan, and South Korea, the three biggest investors in Indonesia, are expected to encourage Saudi Arabia`s investment in the country, which in 2017, was recorded at only US$3.5 million.
According to Shihab, the three East Asian countries could be partners for Saudi Arabia to invest in Indonesia, considering one of the obstacles in increasing Saudi investment in Indonesia is "lack of courage."
"The Saudis may need partners to convince them. Hence, China, South Korea, and Japan, which are used to doing business in Indonesia, can help Saudi companies to enter Indonesia," he stated.
After the visit of King Salman bin Abdulaziz Al-Saud to Indonesia last year, Indonesia-Saudi Arabia Business Council was established that aims to follow up on the potentials of economic cooperation between the two countries.
However, economic relations between Indonesia and Saudi Arabia are still in place.
"However, we remain optimistic, as in terms of policy, the Saudi government has appointed Indonesia as its investment destination. Furthermore, (what holds importance) is how we should respond to it and ensure that bureaucracy will not hamper the plan," Shihab remarked.
According to Shihab, collaboration with China, Japan, and South Korea, which have successfully attracted investment from Saudi Arabia, is crucial to attracting Saudi investors, who mostly have interests in tourism, oil and gas, and real estate businesses in Indonesia.
Saudi Arabia has huge investment in the three East Asian countries.
In China, Saudi Basic Industries Corporation and Saudi Oil Company Aramco agreed to build a petrochemical complex in China, with a contract worth $70 billion.
Meanwhile, 34 percent of the shares of South Korean steel-producing company POSCO Engineering & Construction were purchased by the Saudi Public Investment Fund, with a value of $1 billion.
Meanwhile, the Japanese investment and investment company, SoftBank, will receive an investment of $45 billion from the Saudi Public Investment Fund within five years.
The Saudi Arabian government views Indonesia`s initiative to involve the three East Asian countries in developing investment cooperation as important.
The initiative is in line with one of the 2030 Missions launched by the Saudi government: expanding investment at home and abroad.
"Saudi Arabia, Japan, China, South Korea, and Indonesia are important countries that have great economic power in the world, as well as members of the G20," Deputy Head of Mission for Indonesia at the Saudi Embassy in Jakarta Yahya Al-Qahtani noted at the symposium.
He expressed hope that this initiative would be implemented to enhance cooperation and generate benefits for the five involved countries.
Reporting by Yashinta Difa Pramudyani
Editing by Libertina W Ambari
Reporter: Antara
Editor: Yosep Hariyadi
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