JAKARTA: Indonesia sees an opportunity for agricultural cooperation with Saudi Arabia, the Ministry of Trade said on Wednesday after talks with a Saudi investment company interested in the country’s edible oil products.
Indonesia is the world’s top producer and exporter of palm oil. Its exports of the commodity are worth about $27 billion a year.
Saudi Arabia expressed interest in the sector during a recent meeting between officials of the Indonesian Mission in Riyadh and the Saudi Agricultural and Livestock Investment Co.
“Saudi Arabia has started to look into food security investments in Indonesia. One of the commodities they are looking to invest in is edible oil products,” the Indonesian Ministry of Trade said in a statement.
“On edible oil products, SALIC is extremely interested to form cooperation with Indonesia. Indonesia is the largest producer of crude palm oil (CPO), whether it’s produced by state plantations, private, or those that belong to the public.”
Food security is one of the key objectives of Vision 2030, Saudi Arabia’s diversification and transformation plan.
A state-owned enterprise, SALIC operates as an investment company, with its portfolio focused on food commodities identified “based on their strategic importance to ensure long-term food security,” including edible oil, according to the company’s website.
Commercial ties between Indonesia and Saudi Arabia have been on the rise for the past few years. Indonesia’s exports to the Kingdom grew by around 44 percent between 2018 and 2022, according to data from the Indonesian Embassy in Riyadh.
In 2022, the Southeast Asian country exported nearly 226 million metric tons of cooking oil to Saudi Arabia, making it the Kingdom’s main source of the commodity.
