TEMPO.CO, Jakarta - Delegates from the United Arab Emirates are asking for investment guarantees from President Joko Widodo. During a meeting at the Presidential Palace yesterday, May 18, Energy and Mineral Resources Deputy Minister Arcandra Tahar said the UAE requested investment protection.
"They are asking for it to be signed immediately so the cooperation can start," Arcandra said after meeting with the UAE Energy Minister Suhail Mohammed Faraj al-Mazroui.
Minister Arcandra said the investment guarantee will be given in various forms, including the nationalization of UAE companies operating in Indonesia.
The UAE, Arcandra said, does not want its companies nationalized only when a problem occurs. "The same thing is asked by other countries, like Qatar. This is the current trend".
He said the UAE also requests investment protection for partnerships in the oil and gas, renewable energy, and port management sectors.
The cooperation between Indonesia and UAE in the oil and gas sector includes the transaction between Abu Dhabi National Oil Company (ADNOC) and Pertamina, and the cultivation of the Ruby Field in Sebuku Block by UAE company Mubadala.
In the renewable energy sector, Arcandra says Masdar is interested in building solar power plants. For port projects, the UAE has mentioned Dubai Port World's plan to cooperate with Pelindo II for technology and port equipment procurement.
If Indonesia granted all of UAE's requests, Arcandra estimates the Middle East country's investment value in Indonesia to triple, from today's US$2 billion to around US$7 billion.
"Indonesia will not only benefit from the capital inflow, but also from the additional jobs provided and economic growth," he said.
ISTMAN M.P.
