The Indonesian government offered to be a mediator in the conflict between the Kingdom of Saudi Arabia and the Republic of Iran which heated up in early 2016. The conflict was marked by the termination of diplomatic relation by the Kingdom of Saudi Arabia toward the Republic Iran, withdrawing all Saudi Arabian diplomats and expelling Iranian diplomats in Saudi Arabia. This conflict is the culmination of a prolonged conflict between the two parties. The Indonesian government quickly sent special envoys to decrease tensions and offered to become mediators. This undergraduate thesis will discuss the reasons Indonesia offered to be involved as a conflict mediator in terms of Indonesia's capacity as a mediator. Indonesia as a multicultural state has sufficient experience to overcome ideological conflicts between Saudi Arabia and Iran. The conflict is the result of differences in Islam. The closeness of Indonesia with the two states and the strength of Indonesia in the ASEAN Region is a strategic position that is beneficial to be utilized as an opportunity to influence the policies of the two states.