Egypt was the first country to recognize Indonesia's independence in 1945. The Egyptian Government represented by Al-Nukrashi Pasha, then Prime Minister and Minister of Foreign Affairs, and the Indonesian Government represented by Agus Salim, then Vice Minister of Foreign Affairs, signed a Friendship Treaty by which they agreed on establishing diplomatic relations on June 10, 1947.

Egypt and Indonesia participated in establishing the Non-Aligned Movement and the Organization of the Islamic Conference, in which both countries played a pivotal role, in addition to their common interest in promoting the South-South dialogue and cooperation in G77, G15, D8 and Asia Africa New Strategic Partnership.

The two countries annually hold bilateral political consultations to discuss the bilateral relation, regional as well as international issues of mutual concern. A joint commission on economic and technical cooperation between the two countries is held every two years in their capitals on rotating basis. Visits are intensively exchanged between the two countries. The First Round of Political Consultations was held in 2004, while the Second Round was held in 2005, followed by the Fourth Round of the Egyptian-Indonesian Joint Committee in Cairo.