Indonesia Secures US$44.6 Billion Investment Commitments from UAE

TEMPO.CO, Jakarta - Indonesia has managed to secure US$44.6 billion investment commitments from the United Arab Emirates (UAE) during the visit of President Joko Widodo (jokowi) to the Arab country.

The investment would focus mainly on three sectors, notably renewable energy, industries based on good environmental management, and investment with good collaboration, according to Investment Minister Bahlil Lahadalia.

"In order to make a quick response to realize the concept of joint investment between Indonesia and the UAE, we have been instructed to take care of all matters related to licensing and other facilitation needed by UAE investors in Indonesia," he said in a statement on Sunday.

Bahlil, who accompanied President Jokowi during the Indonesia-UAE Business Forum in Dubai on Thursday (November 4, 2021), expressed his readiness to welcome investment from the UAE and accelerate the realization of the great vision of the two countries.

The business meeting was attended by nine UAE companies that already have an interest in investing in Indonesia for both new and expansion investments.

Several companies present expressed their commitment to invest in Indonesia adding to the b-to-b agreements that had been exchanged in front of the leaders of the two countries.

Some of those who expressed commitments include Al Dahra Group (dairy products), Yas Holding (agriculture), Emirates Global Alumunium (aluminum smelters), Damac Properties (properties) and AMEA Power (renewable energy).

In total, investment commitments during the president's visit to the UAE reached US$44.6 billion, including the investment value of the Memorandum of Understanding worth US$15 billion between the Ministry of Investment and Air Products from the United States.

Speaking at the forum, President Jokowi emphasized the commitment of the Indonesian government to downstream and stop the export of raw mineral products to international markets.

"We will continue to prohibit the export of metal mineral products--after aluminum and nickel, maybe later copper--to support the investors to build value-added industries in Indonesia," said the president when responding to Emirates Global Aluminum (EGA)'s plan to invest in Indonesia, in partnership with PT Inalum (Persero).

Meanwhile, UAE Minister of Energy and Industry Suhail Mohammed Al Mazrouei who represented the UAE government expressed his appreciation for the very close relationship between the two leaders.

Suhail said that the UAE wanted to cooperate with Indonesia, not only because Indonesia has the world's largest Muslim population, but also has the capability, resources and strategic position in the international stage.

"We have a high target from the cooperation signed today. The UAE government has a special interest in the construction of Indonesia's new capital city. In addition, we also see interest from the UAE private sector. We need guidance from President Jokowi and other ministers to ensure that our commitment can be realized well," Suhail noted.

Based on the records of the Ministry of Investment, the realization of investment from the UAE in Indonesia in January-September 2021 was US$7.8 million.

Meanwhile, the accumulated investment realization from the UAE in Indonesia from 2016 to the second quarter of 2021 reached US$250.7 million and was ranked 27th.

Investments from the UAE are dominated by the food crops and plantation sectors with a total realization of US$109.0 million, and 71 percent of the UAE's total investment projects in Indonesia is located outside Java.

Read: Jokowi Promotes Indonesia Land of Diversity at Expo 2020 Dubai

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