ASIATODAY.ID, JAKARTA — Indonesia and Kuwait have agreed to strengthen cooperation in energy security and accelerate broader economic collaboration, underscoring a growing strategic partnership at a time of heightened geopolitical and economic uncertainty.
The commitment was reaffirmed during a meeting between Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and Kuwait’s Ambassador to Indonesia, Khalid Jassim Alyassin, in Jakarta on June 18, 2026.
The two countries, which have maintained diplomatic relations for more than five decades, are seeking to expand cooperation in trade, investment, and energy as global markets grapple with supply chain disruptions, geopolitical tensions, and energy security challenges.
“Indonesia and Kuwait share a strong diplomatic foundation. Both countries have agreed to continue working together to strengthen energy security amid ongoing geopolitical uncertainty,” Airlangga said.
Economic ties between the two nations have shown steady growth. Bilateral trade rose 10.69 percent in 2025 to US$606 million, up from US$547.5 million a year earlier. Kuwaiti investment in Indonesia also increased significantly, reaching US$1.2 million in 2025 from US$290,000 in 2024, driven largely by the oil and gas sector.
Energy remains a cornerstone of the relationship. Kuwait Foreign Petroleum Exploration Company (KUFPEC) is currently involved in eight oil and gas exploration projects across Indonesia, including operations in Buton Island, the Natuna Sea, East Kalimantan, and the Anambas region through the KUFPEC Indonesia BV consortium.
The cooperation builds on an existing memorandum of understanding on oil, gas, and petrochemical collaboration signed in 2019. The two countries have also established agreements covering economic, technical, and trade cooperation, reflecting a broader effort to deepen bilateral engagement.
Ambassador Khalid noted that the growing number of agreements highlights Indonesia’s increasing strategic importance to Kuwait, particularly in the economic sector.
Beyond energy cooperation, both sides pledged to support the implementation of existing agreements and accelerate negotiations for the Indonesia–Gulf Cooperation Council (GCC) Free Trade Agreement. The trade pact, currently under negotiation, is targeted for completion by the end of 2026 and is expected to expand market access and investment flows between Southeast Asia’s largest economy and the Gulf region.
For Indonesia, stronger ties with Kuwait align with a broader strategy of diversifying economic partnerships, attracting Middle Eastern investment, and reinforcing long-term energy resilience amid an increasingly volatile global landscape. (AT Network)
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