News in brief: Saudi Arabia has shown interest in investing in Indonesia oil palm sector, as part of its food security investments. Indonesia is a major global producer and exporter of palm oil, and the two countries have seen a significant increase in commercial relations in recent years.
Saudi Arabia has expressed interest to invest in Indonesiaâs oil palm sector, according to a news report on the Indonesian Ministry of Trade’s statement.
The ministry claimed to have had talks with Saudi Investment Company (SICO), a Geneva-based firm that represents the worldwide interests of the Saudi Binladin Group. Officials of the Indonesian Mission in Riyadh and the Saudi Agricultural and Livestock Investment Company, had also discussed the partnership earlier.
The ministry said that Saudi Arabia was looking into food security investments in Indonesia and edible oil products was their main attraction in the commodity industry. Food security ranks high in the key objectives of Vision 2030, the Kingdomâs diversification and transformation plan.
Indonesia is a major global producer and exporter of palm oil, with exports generating about $27 billion annually.
Commercial relations between both countries have seen significant increase in the past few years. For example, Indonesiaâs exports to Saudi Arabia have grown by 44% between 2018 and 2022, according to figures published by the Indonesian Embassy in Riyadh.
The Southeast Asian country exported nearly 226 million metric tons of cooking oil to Saudi Arabia in 2022 and accounts for a large percentage of the commodity in second-largest nation in the Arab world.
SICOâs website states that its investment journey began in 2012 and it has partnered with several global companies in the field of agriculture, grain trading, rice and meat in different countries. Ukraine, Canada, India, Australia, Brazil and Singapore are some of the nations where the investment firm has business interests.
