SAUDI ARABIA
Landmark visit to Indonesia by King Salman will usher in new era: Envoy
RASHID HASSAN | Published — Wednesday 1 March 2017
Indonesian Ambassador Agus Maftuh Abegebriel. (Courtesy photo)
RIYADH: The landmark visit by King Salman to Indonesia beginning today, the first by a Saudi monarch since 1970, will usher in a new era of bilateral relations, Indonesian Ambassador Agus Maftuh Abegebriel told Arab News.
“King Salman is scheduled to tour Indonesia ... after the official visit of President Joko Widodo to the Kingdom in late 2015,” said Abegebriel.
“This historic visit is expected to mark a new level of relations between Indonesia and Saudi Arabia... in various fields and at all levels, including the government level as well as people-to-people exchange.”
He added: “Of all the fields of cooperation, I believe economic cooperation will be top of the list. This is in line with Saudi Vision 2030 and Indonesia’s priorities for economic cooperation. As members of the G20, Indonesia and Saudi Arabia have so much untapped potential in economic sectors, from trade and investments to the mining sector.”
Drafts of joint declarations, memoranda of understanding and agreements in various fields have been exchanged by the relevant ministries and institutions in both countries, including cooperation in the fields of trade, education, health, culture, information, science, technology, civil aviation, fisheries and combating transnational crimes, Abegebriel said.
“I think the fact that both governments are working as a team and hand-in-hand to make this visit a success in itself outweighs any agreement that may be signed thereof,” he added.
“I believe strategic and defense cooperation will be among the topics to be discussed... since Indonesia and Saudi Arabia signed a defense cooperation agreement in 2014, and it was discussed during the state visit of the president of the Republic of Indonesia in 2015.”
The envoy said the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (ASEAN), whose headquarters are in Riyadh and Jakarta respectively, have had relations since 1990.
There is a lot of potential in enhanced cooperation between the two regional blocs, in light of impressive growth in trade and investment between them in the past decade, he added.
“Indonesia and Saudi Arabia, being one of the key players in ASEAN and the GCC respectively, will surely take into account the potential between these two inter-governmental organizations and ways to further enhance relations,” he said.
As Indonesia sends the largest number of Haj pilgrims annually, on the increased Haj quota Abegebriel said Indonesia “conveys its highest appreciation” to King Salman “for continuous efforts in very successfully organizing the most important rituals in Islam.”
The envoy said bilateral bonds started in the 13th century, when Muslim traders and Islamic scholars from the Arab world arrived in the Indonesian archipelago.
“Take for example, the high number of Arabic words that have been immersed into the Indonesian language, or the ways of celebrating Islamic festivals. All these signify the strong bonds between the peoples of the two brotherly countries,” he added.
“I believe cultural cooperation, designed among other things to further promote people-to-people contact, is also on the table and currently being discussed by the relevant ministries of the two governments. This visit is an important showcase of how strong cultural relations have been, and will be, between Indonesia and Saudi Arabia.”
King Salman decorated the Indonesian president with the prestigious King Abdul Aziz Medal when he visited the Kingdom in September 2015.
To welcome King Salman, the Indonesian government has made elaborate civil and security arrangements with the Transportation Ministry, issuing a notice to all stakeholders to facilitate the smooth arrival and stay for the monarch, who is also expected on a private family trip to the island of Bali during his tour of the archipelago.
SAUDI ARABIA
Crowds welcome King Salman in Indonesia
AP, Reuters | Published — Wednesday 1 March 2017
Warm welcome for King Salman in Jakarta
The king is on the second leg of a tour of Asian countries to drum up business and improve ties. The visit will see the two nations sign a pact to combat terrorism, according to the Saudi envoy to Indonesia.
King Salman will hold talks with Widodo and attend a reception. He will also meet religious leaders and visit Southeast Asia’s biggest mosque Istiqlal before heading to the vacation island of Bali for more than a week.
Indonesia hopes to attract billions of dollars of investment from Saudi Arabia, though the trip will also focus on building cultural and religious ties and promoting education.
Saudi Arabia aims to open more Islamic schools in Indonesia, which will teach religion using the Arabic language, and step up the number of scholarships for students.
The king’s visit to Indonesia also comes as fringe Islamist groups grow in influence and Muslim leaders take an increasingly strict line on Islamic issues, which is at odds with Indonesia’s traditional brand of moderate Islam.
Indonesian police killed a militant on Monday after he detonated a small bomb in the West Java city of Bandung. Security officials said they were investigating whether he had links to a radical network sympathetic to Daesh.
King Salman started his Asia trip in Malaysia and also plans to visit Brunei, Japan, China, the Maldives and Jordan.
Check our photo gallery for more pictures:
A Sea of Love: Indonesians flock to greet Saudi King Salman
http://www.arabnews.com/node/1061506/saudi-arabia
SAUDI ARABIA
Saudi Arabia, Indonesia sign range of deals at start of King Salman's visit
Darren Whiteside | Reuters | Published — Wednesday 1 March 2017
King Salman reads a statement as Indonesia's President Joko Widodo looks on at the presidential palace in Bogor, West Java, Indonesia, on Wednesday. (Adi Weda, Pool Photo via AP)
King Salman, second from left, attends a bilateral meeting with Indonesian President Joko Widodo, center at right side, at the presidential palace in Bogor, Indonesia, on Wednesday. (Adek Berry/Pool Photo via AP)
BOGOR, Indonesia: King Salman held talks with Indonesia’s president on Wednesday and signed a range of cooperation agreements at the beginning of a 12-day visit to the world’s largest Muslim-majority country.
King Salman and Indonesian President Joko Widodo oversaw, among 11 pacts, the signing of agreements to take down trade barriers and a new agreement between state energy companies Saudi Aramco and Pertamina, building on an existing $6 billion plan to expand Indonesia’s biggest refinery.
The king was also greeted by Basuki Tjahaja Purnama, Jakarta’s Christian governor.
On Tuesday, Saudi Arabia's ambassador to Indonesia, Osama Mohammad Abdullah Alshuaibi, told Reuters the two countries would cooperate in tackling terrorism and that military officers were training in each other’s countries to counter Daesh militants.
Secular Indonesia has grown increasingly concerned about security, after several attacks over the past year blamed on supporters of Daesh, and has deployed at least 9,000 police and military for the 12-day visit.
Roads were closed to traffic and snipers stationed along the route the king’s convoy took from the airport to the presidential palace in the town of Bogor.
Thousands of people holding Indonesian and Saudi flags welcomed the king.
'Best practices'
King Salman held talks with Widodo as torrential rain lashed the palace grounds.
He will also meet religious leaders, make a speech at parliament, and visit Southeast Asia’s biggest mosque, Istiqlal, on Thursday before a brief trip to Brunei and then an extended break on the Indonesian holiday island of Bali.
Indonesia hopes to attract billions of dollars of investment from the kingdom, though the trip will also focus on building cultural and religious ties and promoting education.
Saudi Arabia aims to open more Islamic schools in Indonesia, which will teach religion using the Arabic language, and step up the number of scholarships for students.
The king’s visit to Indonesia comes as fringe Islamist groups grow in influence and Muslim leaders take an increasingly strict line on Islamic issues, which is at odds with Indonesia’s traditional brand of moderate Islam.
“The two countries face the same challenge of rising radicalism and intolerance so cooperation in those areas will be beneficial,” said Yenny Wahid, a moderate Indonesian Muslim figure and head of the Wahid Foundation. “Saudi Arabia has been aggressive in de-radicalization and rehab programs for terrorists. We can learn best practices from each other.”
King Salman started his Asia trip in Malaysia and as well as the Brunei stop he will visit Japan, China, the Maldives and then Jordan.
http://www.arabnews.com/node/1061601/saudi-arabia
Naser Al-Tamimi | Published — Tuesday 28 February 2017
The growing importance of Asia represents a profound shift in the balance of global oil markets, and may provide Saudi Arabia for decades to come with a stable market for its energy exports.
According to ClipperData, Asia was the destination for 68 percent of Saudi crude exports last year, while North America accounted for some 16.5 percent of volumes. Tellingly, nearly a third of Saudi Arabia’s total oil exports, and more than a quarter of its exports, were shipped to the countries that King Salman will visit in the next few weeks.
Asian countries can play an important role in Saudi efforts to diversify the economy away from oil, going beyond their traditional role of purchasing crude oil and other energy products.
Renewable push
Saudi Arabia seriously considers the introduction of renewable and nuclear energy an option to counter rising oil consumption, and to diversify its energy mix and the industrial structure for the Kingdom’s future development.
Under the ambitious National Renewable Energy Program (NREP), the Kingdom will develop a total of 9.5 gigawatts (GW) of renewable energy by 2023, which will increase the share of renewables in the power mix from 0 to 4 percent. Energy Minister Khalid Al-Falih says the program will require investment of $30-$50 billion in the next 6 years.
From the Saudi perspective, Asian countries would be very attractive partners to build a clean energy industry. They will also be useful to address a broad range of things the Kingdom needs, such as technologies, training of human resources, investments, high standards of safety and security, research and development and so on.
Solar-powered water desalination will be an integral part of the Kingdom’s long-term energy strategy. The Kingdom is also starting its nuclear program and has made progress with the design for two reactors with a combined capacity of 2.8GW. However, BMI research noted that reforming the fuel-subsidy systems is needed if renewables are to become more cost-competitive with fossil fuels in power generation.
Stable supplies
Despite the efforts of economic diversification, Saudi Arabia will remain dependent on oil exports for a long time. HSBC predicts that the oil sector will remain dominant, but its contribution to the rise in exports will ease from 87 percent in 2016-20 to 78 percent in 2021-30. In this context, Saudi Arabia is participating in oil processing and storage projects in Asia.
These actions are to improve access to markets, protect the Kingdom’s future oil shares in the region, and offer a stable source of supply. Saudi Aramco has stakes in Asian refineries via joint ventures in Japan (Showa Shell), South Korea (S. Oil) and China (FREP). The company also plans to invest in new refineries to cement its position in countries including China, India, Indonesia, Malaysia and Vietnam.
There is a growing push in the Kingdom to develop and apply clean energy technologies and reduce dependence on oil consumption. A successful model to follow may be Japan.
Naser Al-Tamimi
Malaysia’s Prime Minister Najib Razak on Monday said Saudi Aramco will invest $7 billion into a 300,000-barrel-per-day Refinery and Petrochemical Integrated Development (RAPID) project in the southern state of Johor, which is valued at $27 billion. According to Reuters, Aramco will also supply at least 50 percent of the crude that will be processed at RAPID, with an option to increase supply.
Saudi officials are in talks with the Indonesian government about constructing an oil refinery in Cilacap, Central Java, as the result of cooperation between Saudi Aramco and Pertamina, with an investment of $6 billion. Aramco is also in advanced negotiations with the China National Petroleum Corp. (CNPC) to build the Yunnan refinery in southwestern China.
Energy efficiency
Saudi Arabia has identified energy efficiency as a key national priority and sees renewable energy sources as supplementing existing sources. There is a growing push in the Kingdom to develop and apply clean energy technologies and reduce dependence on oil consumption. A successful model to follow may be Japan, which has one of the most energy-efficient economies in the world.
One of the most ambitious targets for the Saudi government within Vision 2030 is to boost the ratio of non-oil exports as a percentage of non-oil gross domestic product (GDP) from the current 16 percent to 50 percent by 2030.
The Asian countries King Salman will visit may provide a very useful experience of how to support small and medium enterprises (SMEs), which are the backbone of growth of the non-oil sectors, and which the Kingdom desperately needs to increase employment and productivity.
Finally, Saudi officials are keen to court Asian investors for the sale of a 5 percent stake in Aramco next year, which is expected to be the biggest public offering in history. This is part of a broader privatization program of state-owned companies and increasing the role and effectiveness of the private sector in the Kingdom.
• Dr. Naser Al-Tamimi is a UK-based Middle East researcher, political analyst and commentator with interests in energy politics and Gulf-Asia relations. Al-Tamimi is author of the book “China-Saudi Arabia Relations, 1990-2012: Marriage of Convenience or Strategic Alliance?” He can be reached on Twitter @nasertamimi and e-mail: nasertamimi@hotmail.co.uk.
http://www.arabnews.com/node/1061176
Kingdom, Indonesia sign 11 pacts
Mar 2, 2017
Custodian of the Two Holy Mosques King Salman and Indonesian President Joko Widodo wave to the crowd from the presidential palace in Bogor, West Java, Indonesia, Wednesday. — Reuters
Bogor, Indonesia — Saudi Arabia and Indonesia Wednesday signed agreements in areas ranging from trade to aviation as Custodian of the Two Holy Mosques King Salman visited the world’s most populous Muslim-majority country.
King Salman was received at Halim International Airport by President Joko Widodo, Foreign Minister Retno Lestari Priansari Marsudi, Minister of Religious Affairs Lukman Hakim Saifuddin and a number of officials.
Crowds of flag-waving schoolchildren lined the route as a convoy of vehicles carrying the King and his entourage sped through pouring rain to a presidential palace in the nearby city of Bogor where a band played the two countries’ national anthems.
King Salman and President Widodo oversaw the signing of 11 cooperation agreements following Wednesday’s talks at the Bogor palace.
The agreements included a Saudi commitment to provide $1 billion of financing for economic development and cooperation to combat transnational crime such as people smuggling, terrorism and drug trafficking.
Apart from trade and aviation, they included agreements on boosting cooperation in science, health and fighting crime.
Jakarta and Riyadh also inked an agreement that builds on an existing $6 billion deal between state-owned energy firms Aramco and Pertamina to expand an Indonesian oil refinery.
On Thursday the King is due to give a speech to parliament and visit a major Jakarta mosque.
He is also due to meet leaders of some of Indonesia’s major Muslim organizations during the trip.
President Widodo hailed King Salman’s visit as “historic” and said he hoped it could lead to closer economic ties.
“As the country with the biggest Muslim population in the world, Indonesia will always have a special bond with Saudi Arabia,” he told the King at the palace.
Extremely happy about this visit and looking very much forward to increased ties on all fronts with brotherly Indonesia for the benefit of both peoples and countries. KSA/GCC/Arab relations with South East Asia have been neglected for too long and it cannot continue like this and hopefully this visit will cement a new successful era.
http://saudigazette.com.sa/saudi-arabia/kingdom-indonesia-sign-11-pacts/
King stresses need to deepen ties with Indonesia to confront challenges
Indonesia’s President Joko Widodo decorates Custodian of the Two Holy Mosques King Salman with the country’s highest medal “Star of the Republic of Indonesia” in Jakarta on Wednesday. – SPA
JAKARTA – Custodian of the Two Holy Mosques King Salman underlined the need for deepening the Kingdom’s ties with Indonesia to confront the challenges facing the present day world.
The King made the remarks in a speech during a session of official talks with Indonesia’s President Joko Widodo at Astana Presidential Palace in Jakarta on Wednesday evening.
King Salman said that improving bilateral relations would positively contribute in tackling the regional and international crises. He also highlighted the significance of enhancing cooperation among Islamic countries based on good neighborliness, non-interference in the internal affairs of other countries, and resolving of disputes through peaceful means in accordance with the charters of United Nations, Organization of Islamic Cooperation and principles of international law.
While highlighting the need to intensify efforts in confronting the challenges, mainly the phenomenon of terrorism, King Salman appreciated the position of Indonesia in supporting Islamic solidarity as well as the just cause of the Palestinian people.
“There is a need to consolidate the ties of cooperation between us in all fields,” the monarch said while pointing out the fact that Saudi Arabia and Indonesia are members of UN, OIC and G20.
Thanking the Indonesian leaders and people for the warm welcome and generous hospitality accorded to him and the accompanying delegation, the King expressed hope that the visit would contribute to developing this relation to higher horizons in a way serving the interests of the two countries.
At the outset of the meeting, President Widodo welcomed King Salman and highlighted the current deep-rooted bilateral relations between the two countries. He expressed the keenness of his country on enhancing and promoting the relations in all fields to the best interests of the two countries and peoples. He also shared readiness of his country to become a strategic partner of the Kingdom in achieving the Vision 2030.
Earlier, the King and Widodo oversaw signing of 11 pacts between the governments of the two countries. These included a joint declaration, six memoranda of understanding, and several cooperation programs.
Following the signing ceremony, Widodo decorated King Salman with the “Star of the Republic of Indonesia,” which is the highest medal of Indonesia in recognition of the King’s efforts in various fields.
The King also attended a luncheon banquet hosted by Widodo.
http://saudigazette.com.sa/saudi-ar...ed-deepen-ties-indonesia-confront-challenges/
Hopefully even closer ties to the 5 million big Arab-Indonesian community will be pursued as well so they won't be forgotten.
Anyway God bless Indonesia.
Dr. Naser Al-Tamimi | Published — Friday 3 March 2017
Saudi-Indonesian ties set to strengthen
Saudi Arabia’s King Salman this week arrived in Indonesia accompanied by a large contingent of high-ranking officials and business people, which reflects the importance attached by Riyadh to developing relations with Jakarta.
Indonesia is the world’s largest Muslim-majority state and the fourth most populous country in the world. International Monetary Fund (IMF) data indicate that Indonesia boasts the largest economy in the Association of Southeast Asian Nations (ASEAN), and the 16th largest worldwide. In this context, it is vital for the Kingdom to cultivate strategic relations with this future rising economic power.
Saudi Arabia has been Indonesia’s largest global supplier of crude oil and its biggest trading partner in the Arab world, Middle East and North Africa (MENA). Two-way trade decreased to $4.1 billion in 2016, as the decline in global oil prices hit trade between Saudi Arabia and Indonesia very hard. The volume between the two countries dropped significantly last year by almost 26 percent from 2015 and by over 53.2 from 2014.
Indonesia’s main exports to Saudi Arabia include cars, palm oil, tuna, rubber products, plywood, paper products, pulp, charcoal and textile products; the Kingdom’s top exports are mainly oil products and petrochemicals. Looking forward, Indonesia and Saudi Arabia are pushing to triple or quadruple their bilateral trade value by 2020 as the two countries believe they have a lot of potential for expansion.
Potential investments
Indonesia continues to implement measures to open up its economy and attract more investment and foreign companies. Foreign direct investment (FDI) continues to flow into Indonesia although volumes have decreased by over 29 percent year-on-year to $15.51 billion in 2015, according the latest data from the UN Conference on Trade and Development (UNCTAD).
Saudi Arabia’s investment in Indonesia is still low, but could increase significantly after the visit of the Saudi king. Based on data from Indonesia’s Investment Coordinating Board, Saudi Arabia only invested $900,000 in Indonesia last year, hence being ranked 57th in terms of the biggest foreign investors. Saudi investment between 2010 to 2015 totalled only $34 million, or 0.02 percent of total FDI in the period. However, during King Salman’s visit, Saudi Arabia pledged $1 billion in development finance for Indonesia, while the Indonesian government hoped the visit would bring Saudi investments of up to $25 billion.
However, Fitch rating agency noted in a recent report that structural reform since September 2015 has also put Indonesia on solid footing when it comes to its growth outlook in the medium term. Indeed, Indonesia’s growing role as a manufacturing hub became more attractive to foreign investors particularly with its huge, fast-urbanizing domestic market and a rising middle class. The country’s domestic financial market is also well developed, providing opportunities for investment whilst Islamic banking will add another dimension for investors, particularly those from Saudi Arabia. Indonesia has the second biggest Islamic finance industry in Asia in terms of asset size, next to Malaysia. Additionally, Indonesia continues to suffer from a sizable infrastructure deficit and this leaves significant potential for the sector to attract investors in future. Above all, Indonesia’s membership of the ASEAN free trade agreement will lower tariff and non-tariff trade barriers with the country’s neighbors.
Though trade between the countries fell during the oil-price crash, there are signs of closer economic relations between Riyadh and Jakarta going forward.
DR. Naser Al-Tamimi
Yet investors in Indonesia face a variety of challenges that hinder the business environment in the country. Chief among these risks are the resource nationalism policies and restrictions on FDI; high levels of bureaucracy and legal risk; corruption; inefficient state-owned enterprises; an inflexible labor market; and threats to foreign workers and businesses from crime and terrorism. The IMF noted in a recent report that “unlocking Indonesia’s full economic potential will require policy reform success — particularly in the areas of bureaucratic efficiency, corruption and investment promotion — and progress on this front could take place at a slow-to-moderate pace.”
Oil interdependence
A recent analysis by the International Energy Agency (IEA) stated that Indonesia’s oil sector is characterised by declining production. Since it peaked at 1.7 million barrels per day (mbpd) in 1991, oil production has been declining steadily, and the current levels, at 0.8 mbpd in 2016, covers only about half of the Indonesia’s oil demand. IEA’s New Policies Scenario forecasts Indonesia’s oil production to remain flat at around 0.8 mbpd in the medium term to 2020, and decline over the long term to reach 0.5 mbpd.
Thus, Indonesia will remain a net importer of both crude oil and refined fuels over the next two decades. The country currently relies on fuel imports for about 52 percent of its annual needs and this percentage is expected to increase to 61 percent by the end of the decade. In this context, the $6 billion agreement signed between Saudi Aramco and Indonesia’s Pertamina seems very logical and will strengthen the presence of the Saudi company in the promising Indonesian market and wider ASEAN region. Aramco, which currently supplies the Cilacap refinery with 120,000-125,000 barrels per day (bpd), could increase the supply to up to 270,000-300,000 bpd after an upgrade is completed.
The next economic giant
The IMF expects Indonesia’s growth to rise modestly to 5.1 percent in 2017, with the country’s gross domestic product (GDP) hitting over a trillion dollars by the end of the year, for the first time in Indonesian history. Indonesia is also expected to post impressive real GDP growth over the medium term, with the forecast annual average real growth rate coming in at 5-6 percent between 2017 and 2021. Importantly, Indonesia’s growth outlook remains positive over the long term, supported by the country’s large domestic consumption base, favorable demographics and a gradual improvement in exports and business environment. BMI Research forecasts real GDP growth to average at 6 percent over the next decade.
Consequently, Indonesia is projected to rank among the global top 10 economies in market exchange rate terms by 2030, according to London-based Center for Economics and Business Research. Indonesia’s positive economic outlook is however challenged by global uncertainties, including those around policies from the Trump administration, the possible impact from China’s economic slowdown, and potential domestic political polarization, which could slow the economic reforms.
• Dr. Naser Al-Tamimi is a UK-based Middle East researcher, political analyst and commentator with interests in energy politics and Gulf-Asia relations. Al-Tamimi is author of the book “China-Saudi Arabia Relations, 1990-2012: Marriage of Convenience or Strategic Alliance?” He can be reached on Twitter @nasertamimi and e-mail: nasertamimi@hotmail.co.uk.
http://www.arabnews.com/node/1062431
4 million Indonesians on Twitter used the hashtag “raja Salman,” meaning “welcome King Salman” in Indonesian.
https://english.alarabiya.net/en/me...onesian-hashtag-welcoming-the-Saudi-King.html
I don't speak Indonesian but just by taking a look at Indonesian videos covering this visit on Youtube, one can easily spot the million of views and kind comments.
Fantastic reception by the Indonesian public.
@Indos
