The Oil Factor in Indonesian-Saudi Relations at the Present Stage

This article analyzes the oil factor in contemporary Indonesian-Saudi relations and their transformation from a trade partnership to a comprehensive strategic partnership. It examines the historical background to energy cooperation, Indonesia’s changing role in the global oil market from net exporter to net importer, and Saudi Arabia’s growing importance as a key hydrocarbon supplier. Particular attention is paid to the impact of global crises (coronavirus pandemic 2020-2023, escalation of the Ukrainian crisis in 2022), investment projects in oil refining, and expanding cooperation in new energy technologies. The construction of Nusantara (the new capital of Indonesia), the creation of a joint venture for the production of blue hydrogen based on deposits in East Kalimantan, and research in the field of carbon capture and storage can be counted among the most significant investment areas today. The phenomenon of Hajj diplomacy is explored as a specific trust-building tool that facilitates the implementation of energy initiatives by establishing contacts in the religious sphere and organizing pilgrimage processes to Mecca and Medina. The role of personal factors and informal diplomacy in the development of bilateral relations is also analyzed. Crown Prince Mohammed bin Salman, P. Subianto, A. Hartarto and representatives of national energy companies – Saudi Aramco and Pertamina – play an important role in the framework of personal diplomacy. The conclusion is that the combination of religious, economic, and geoenergetic components forms a unique model of interaction between Saudi Arabia and Indonesia, ensuring the sustainability of cooperation amid the global transformation of the energy market.

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