UAE to invest $10 billion in Indonesia

On the directive of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the UAE will invest US$10 billion with Indonesia.

The funds will contribute to the Indonesia Investment Authority - the country's sovereign wealth fund.

Investments will focus on strategic sectors, including infrastructure, roads, ports, tourism, agriculture, and other industries with the potential for growth and the ability to contribute economic and social progress.

Last month, Indonesia's President Joko Widodo announced the members of the Indonesia Investment Authority’s Board of Supervisors and Board of Directors.

This was set up under the South East Asian country's Omnibus Job Creation Law, which was passed in October 2020.

The board is considered to be a turning point in the nation's governance and development.

The Indonesian sovereign fund aims to implement strategic projects to support national progress, including the construction of the new capital in Kalimantan.

The UAE and Indonesia enjoy strong political, economic and cultural ties. Official diplomatic relations between the two countries began in 1976, with the Indonesian embassy in Abu Dhabi opening on October 28, 1978.

The UAE embassy in Jakarta was inaugurated in 1991, following a historic visit by the late Sheikh Zayed bin Sultan Al Nahyan to Indonesia in 1990.

Relations between the two countries have witnessed tremendous growth in recent years with an increase in mutual visits at the level of top leadership and senior officials, most notably the visit by Indonesian President Joko Widodo in September 2015 to the UAE, and the visit by His Highness Sheikh Mohamed bin Zayed Al Nahyan to Indonesia in July 2019.

The two countries signed several agreements and cooperation deals. They recently concluded the UAE-Indonesia Week 2021, during which several cooperation agreements were signed relating to ports, logistics, strategic and defence industries, energy, tourism, the creative economy and mangrove farms.

In terms of trade and economic ties, there was remarkable growth, with the volume of trade exchange reaching about $3.7 billion.