Indonesia and Kuwait agreed to accelerate negotiations on the Indonesia-Gulf Cooperation Council (GCC) Free Trade Agreement, with both sides targeting completion by the end of 2026.
The commitment was discussed during a meeting between Coordinating Economic Affairs Minister Airlangga Hartarto and Kuwait's Ambassador to Indonesia Khalid Jassim Alyassin in Jakarta.
“Indonesia and Kuwait have diplomatic relations built on a strong foundation. This is important for expanding bilateral cooperation. Both countries agree to continue working together on energy security amid geopolitical uncertainty,†Airlangga said, on Friday, June 19, 2026.
KUFPEC expands exploration activities
Kuwait Foreign Petroleum Exploration Company is currently involved in eight oil and gas exploration projects in Indonesia, including in Buton, Natuna, East Kalimantan, and Anambas, according to Airlangga.
The KUFPEC Indonesia BV consortium is also conducting exploration activities in the Anambas area.
Trade rises, investment gains pace
Bilateral trade between Indonesia and Kuwait increased 10.7% year-on-year to US$606 million in 2025, from US$547.5 million a year earlier.
Kuwaiti investment in Indonesia reached US$1.2 million in 2025, up from US$290,000 in 2024, with the oil and gas sector accounting for most of the inflows.
Both countries also agreed to oversee the implementation of existing agreements as talks on the Indonesia-GCC trade pact continue.
