Indonesia’s Energy Relations with the Gulf Cooperation Council Countries: Drivers and Progresses

Abstract

Located on opposite ends of Asia, Indonesia and the Gulf Cooperation Council (GCC) member states have developed dense and multifaceted relations in recent years. Trade and economic relations have been foundational in developing these ties, with energy playing an important role. Energy has long been at the heart of Indonesia-GCC trade. The relations have expanded from traditional energy such as oil and gas to renewable energy. This article examines the progress of Indonesia-GCC relations, particularly in the energy field. It looks at the major past and present developments in the energy cooperation between Indonesia and the Gulf countries, including exports, imports, as well as investments. In doing so, the paper also examines the drivers behind the growing cooperation.

China’s National Interest in Providing Assistance to Indonesia in Handling the Covid-19 Pandemic: Normative and Material

“…Anisa Risanti Suhita,Filasafia Marsya Ma'rifat, this meeting, we can argue that both parties have realised the importance of the partnership to increase and expand ties between them. Investment is still growing, with China becoming the second largest investor in Indonesia (Rakhmat & Pashya, 2020). There are so many agreements both countries have achieved, such as using both yuan and rupiah in investment and trade transactions between them (Rakhmat, 2020).…”

The Practice of Public Diplomacy by the Gulf Cooperation Council Countries Towards Indonesia

“…According to Indonesia's Central Statistics Agency in January-November 2020, the value of Indonesia's crude oil imports reached US$4.29 billion, of which US$2.11 billion came from Saudi Arabia. The GCC countries' energy investments in Indonesia have also increased recently with various projects undertaken by Kuwait Petroleum Corporation, Saudi Aramco, Nebras Power and the Abu Dhabi National Oil Company (ADNOC) (Rakhmat & Pashya, 2022). Since President Jokowi took office in 2014, the improvement in trade and economic relations between Indonesia and the GCC countries has become increasingly noticeable, particularly in the non-energy sector.…”

“…Since President Jokowi took office in 2014, the improvement in trade and economic relations between Indonesia and the GCC countries has become increasingly noticeable, particularly in the non-energy sector. The GCC nations have made investments in several key areas in Indonesia, including Islamic finance, telecommunications, infrastructure, and banking, as highlighted in the study conducted by Rakhmat et al (2021). However, it is important to note that the investment level from the GCC countries is still lower compared to that of Indonesia's traditional economic partners such as China and countries of the ASEAN region.…”

“…As the relationship between Indonesia and the GCC grows stronger over the years, the academic world has taken notice and has begun to examine the various facets of this bilateral relationship. Several studies have explored the relationship between Indonesia and Saudi Arabia (Al Qurtuby & Aldamer, 2018;Rakhmat, 2022), Indonesia and the United Arab Emirates (UAE) (Jensen, 2017;Mason, 2022), and the relationship between Indonesia and the GCC, as a whole (Rakhmat et al, 2021). Research has even been conducted on specific sectors, such as the energy sector (Rakhmat & Pashya, 2022), and joint climate action (Rakhmat & Nugraha, 2023).…”

“…Several studies have explored the relationship between Indonesia and Saudi Arabia (Al Qurtuby & Aldamer, 2018;Rakhmat, 2022), Indonesia and the United Arab Emirates (UAE) (Jensen, 2017;Mason, 2022), and the relationship between Indonesia and the GCC, as a whole (Rakhmat et al, 2021). Research has even been conducted on specific sectors, such as the energy sector (Rakhmat & Pashya, 2022), and joint climate action (Rakhmat & Nugraha, 2023). Despite this growing body of research, one area that has been largely overlooked is the public diplomacy strategies pursued by the GCC towards Indonesia.…”