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Jakarta Post

$2.4b MoU signed on King Salman's second-day visit

  • Stefani Ribka

    The Jakarta Post

Jakarta   /   Fri, March 3, 2017   /  10:24 am
$2.4b MoU signed on King Salman's second-day visit Saudi King Salman, center, prays at Istiqlal Mosque in Jakarta on March 2. (AP/Achmad Ibrahim)

On King Salman bin Abdulaziz Al Saud’s second day of his visit on Thursday, which has included 1,500 of his relatives and members of his entourage, businesspeople from the oil giant have signed four Memorandums of Understanding (MoU) worth US$2.4 billion (Rp 32 trillion).

The four MoUs include US$2 billion commitment between state construction firm PT Wijaya Karya and Adil Makki Contracting Company (AMCO) to build 8,000 low cost houses.

The remaining three MoUs are around $200 million worth for biomass power plant projects between Koperasi Produsen Anugerah Bumi Hijau and Alfanar Energy, training for 1,000 Indonesian nurses by Bunda Hospital and Al-Oula Medical care and a service commitment among three Indonesian associations of hajj and umrah (HIMPO, Kesturi and Ampuri). At Tayar plans to bring more travelers from the Middle East to Indonesia as well as to up the quota and improve the facilities for hajj and umrah travelers from Indonesia.

(Read also: King Salman urges unity in dealing with terrorism, clash of civilizations)

During the first day visit of King Salman on Wednesday, 11 MoUs worth at least $1 billion were signed.

The 11 MoUs include $1 billion worth of various development projects concerning a commitment between the Saudi Fund Contribution and the Finance Ministry. The rest include various sectors, such as health and fishery.

Indonesia hopes the oil giant will invest more to increase its low investment in the past years.

Saudi Arabia invested only $900,000 (Rp 12 billion) last year, a drastic drop from $30.4 million in 2015. It invested $.2.9 million and $400,000 in 2014 and 2013 respectively. (bbn)

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