Strengthen Trade Relations, LPEI And Saudi EXIM Bank Sign Memorandum Of Understanding

JAKARTA - The Indonesian Export Financing Agency (LPEI/Indonesia Eximbank) together with the Saudi Exim Bank officially signed a Memorandum of Understanding (MoU) which is a strategic basis for strengthening collaboration and opening up new business opportunities for exporters in both countries.

This MoU aims to strengthen cooperation and encourage increased bilateral trade between Indonesia and Saudi Arabia, as well as encourage increased involvement in the business world, exploring joint projects, exchanging information and the best practices in export credit policies, to developing new export products that are of common interest.

The signing of this memorandum of understanding was carried out by Plt. Chairman of the Board of Directors concurrently with the Executive Director of Indonesia Eximbank (LPEI), Sukatmo Padmosukarso together with the Chief Executive Officer of Saudi Exim Bank HE Eng Saad Alkhab and witnessed by the Minister of Industry and Mineral Sources of Saudi Arabia, Bandar Al-Khorayef and the Ambassador of Saudi Arabia to Indonesia, Faisal Amodi.

The MoU was carried out during the official visit of the Minister of Industry and Mineral Resources to the Republic of Indonesia.

Plt. Chairman of the Board of Directors concurrently with the Executive Director of LPEI, Sukatmo Padmosukarso, said that this collaboration is expected to strengthen LPEI's strategic role as a Government Special Financial Institution, one of which is to encourage the penetration of the non-traditional export market through the Regional Special Export Assignment Program (PKE).

According to him, this is one of the efforts to expand Indonesia's export markets to new destination countries such as the Middle East, South Asia, and Africa.

As for the last five years (2020'2024), Indonesia's exports to Saudi Arabia showed a positive trend of 8.96 percent with the value of Indonesia's exports to Saudi Arabia in 2024 of US$2.57 billion, an increase of 23.81 percent.

This MoU is more than just a ceremonial step that marks the beginning of real cooperation that can be followed up. We hope to immediately realize a joint project in renewable energy, joint financing, and export efforts, supported by a special team from both parties, It is hoped that the Indonesia Eximbank collaboration with the Saudi Exim Bank can encourage the trade between the two countries, open new opportunities and collaborate to support innovative, green and sustainable projects to support exports between the two countries," said Sukatmo in his official statement, Sunday, April 20.

Saudi Exim Bank Chief Executive Officer, HEL Eng Saad Alkhalb, expressed his commitment to support strengthening cooperation in order to improve trade relations between Indonesia and Saudi Arabia.

According to Saad, this agreement marks an important step in increasing exports and strengthening bilateral trade relations and is expected to be a catalyst for trade development and joint investment projects in various sectors.

"In the Saudi Exim Bank, we are committed to encouraging our exporters to take advantage of promising investment opportunities, and fully dedicated to supporting the export of Saudi Arabia's non-oil and gas products to the Indonesian market," Saad said.