Indonesia and Kuwait strengthen economic, cultural, and humanitarian links through mutual agreements
Indonesia-Kuwait Bilateral Relations Strengthen and Expand
The relationship between Indonesia and Kuwait is growing stronger and more diverse, with significant advancements in trade, politics, culture, and potential free trade agreements.
In 2024, bilateral trade between the two nations reached a record-breaking $547.5 million, marking a notable increase from 2020. This figure has continued to grow, with an impressive 18% growth in the first half of 2025 compared to the same period last year [1][2][3]. Kuwait now ranks as the 87th largest foreign investor in Indonesia, demonstrating the growing financial engagement between the two countries.
On the political front, Indonesia and Kuwait are preparing to conduct their first joint political consultations in Jakarta before the end of 2025, a significant step towards deeper governmental cooperation. In 2023, a Memorandum of Understanding was signed between the Indonesian Supreme Court and the Kuwaiti Constitutional Court, enhancing judicial collaboration and fostering higher-level exchanges [1].
Cultural and educational cooperation is also expanding, with increased scholarships and academic as well as language program exchanges. The Indonesian Embassy in Kuwait is promoting cultural diplomacy, including planned events like the upcoming “Indonesian Night” festival celebrating Indonesia’s Independence Day, which features community cultural and sports activities [1][2].
Regarding labor and human resources, there is a growing workforce of Indonesians in Kuwait—around 6,000 Indonesians currently work there, with steady demand especially for skilled and professional workers. Government-to-government cooperation is expected to soon enable the deployment of Indonesian nurses directly recruited by Kuwait’s Ministry of Health [1][2].
On the free trade agreement (FTA) front, ongoing negotiations are taking place between Indonesia and the Gulf Cooperation Council (GCC), of which Kuwait is a member. This points to a potential future agreement that could further reduce trade barriers and strengthen economic ties [1][2].
Indonesia remains committed to neutrality and non-alignment, in line with its constitution and its belief in building a multipolar world order based on justice and respect for sovereignty. The government of President Prabowo Subianto and Vice President Gibran Rakabuming Raka has launched the National Development Plan (2025-2029) as the first phase toward realizing the "Golden Indonesia 2045 Vision," which aims to reduce poverty, enhance human capital, and achieve high, sustainable economic growth.
As Indonesia celebrates its 80th Independence Day on August 17, 2025, under the theme: 'United in Sovereignty... A Prosperous People... An Advanced Indonesia,' the government has launched a new sovereign wealth fund, Danantara, which manages assets worth USD 1 trillion. Danantara offers investment opportunities in minerals, energy, digitalization, healthcare, and agriculture, inviting Kuwaiti investors to seize these opportunities.
Ambassador of Indonesia to Kuwait, H.E. Lena Mariana, confirmed the rapid progress in relations between Indonesia and Kuwait, expressing her confidence that Kuwait’s leadership will continue to strengthen bilateral cooperation to the benefit of both friendly nations and their peoples.
[1] Source: Indonesian Ministry of Foreign Affairs [2] Source: Embassy of the Republic of Indonesia in Kuwait [3] Source: Kuwaiti Ministry of Finance and National Economy
- The growing financial engagement between Indonesia and Kuwait can be seen in the increasing investments, with Indonesia now ranking as the 87th largest foreign investor in Indonesia for the Kuwaiti government.
- Education and self-development are key areas of cooperation between Indonesia and Kuwait, with expanded scholarship and educational exchange programs, and Indonesian embassy initiatives promoting cultural diplomacy, including events such as the "Indonesian Night" festival.
- In the realm of general news and economic development, the Indonesia-Kuwait relationship is significant as Indonesia aims to expand its trade ties with the Gulf Cooperation Council (GCC), of which Kuwait is a member, and has launched a new sovereign wealth fund, Danantara, offering investment opportunities in various sectors like minerals, energy, digitalization, healthcare, and agriculture, attracting potential Kuwaiti investors.
