Indonesia is poised for significant transformation, driven by ambitious housing projects aimed at addressing its growing demand for residential spaces. The Indonesian government has set its eyes on constructing 3 million homes under a program spearheaded by President Prabowo Subianto, and it’s receiving substantial backing from international investors, particularly from the United Arab Emirates (UAE) and Qatar.
At the forefront of this initiative is Hashim S Djojohadikusumo, the Chairman of the Housing Task Force and the President's Special Envoy on Climate and Energy. During the recent Economic Outlook 2025 event held at the Westin Hotel in Jakarta, he revealed exciting prospects. "This is one entrepreneur, along with his partners from Qatar, who will bring capital to build 1 million units of apartments. The investment is valued at approximately $18-20 billion," he stated. This undertaking marks the beginning of greater efforts to realize Indonesia’s substantial housing goals.
But it's not just Qatar stepping up; the UAE, through its state-owned enterprise Mubadala, is also set to invest. According to Djojohadikusumo, Mubadala will contribute to the establishment of 1 million apartments, positioning the UAE as a significant player in Indonesia's FDI. "This is direct investment in the housing sector," he highlighted, underscoring the relevance of these foreign funds to domestic development.
This comprehensive housing program has evolved from its earlier ambitions of building only 1 million homes to now targeting 15 million units, which Djojohadikusumo insists could increase to 30 million apartments and homes if the presidential mandate is extended. "This isn’t just about building houses; it’s part of broader goals for Indonesia's development, aiming at progress and housing security for its citizens," he added.
Another pivotal development was the recent establishment of the Indonesia Business Council (IDBC), marking the end of a 17-year wait to solidify business networks within the UAE. Officially launched on February 24, 2025, in Dubai, the IDBC aims to fortify Indonesia’s presence and operations within the UAE market, showcasing the commitment of 20 founding companies to extend their business reach and trade opportunities between the two nations.
The Council's inception was attended by numerous stakeholders, including Indonesia's Ambassador to the UAE, H.E. Husin Bagis, and representatives from the Indonesia Trade Promotion Center (ITPC) and Indonesia Investment Promotion Center (IIPC). The IDBC is poised to become the formal platform required for Indonesian entrepreneurs to build strategic partnerships, which will be beneficial for various sectors. "The presence of this organization provides a formal platform for Indonesian businessmen to form strategic partnerships here," the local news quoted, highlighting its importance.
The IDBC has got specific strategic roles, including facilitating business networks, advocating for favorable economic policies, and supporting the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between Indonesia and the UAE. This agreement is instrumental, promoting investment, trade, and industrial development. The Council's mission extends to enhancing the visibility of Indonesian products and culture, aiming to create sustainable economic benefits for both nations.
Importantly, IDBC’s leadership comprises business leaders from various sectors, ensuring varying perspectives collaborate to form cohesive strategies for Indonesia's market entrance and sustainability. This includes representatives from significant companies such as PT Bank Syariah Indonesia, Pertamina International Shipping, and other notable enterprises across the UAE.
The recent dealings signal remarkable potential for strengthening Indonesia’s business foothold within the UAE. Investors are excited about participating, not just for their financial benefits but also for the strategic exchange of ideas and cultural ties. Djojohadikusumo believes this collaboration will not only transform the Indonesian housing sector but will also pave pathways for broader economic cooperation.
Looking to the future, the expectation remains high for these initiatives to cultivate a flourishing economic ecosystem. Through bolstered FDI and strengthened trade relationships, both Indonesia and the UAE are set to navigate enhanced bilateral ties successfully, driving substantial growth on either side.
These investments will go beyond just immediate financial gains, fostering long-term partnerships and setting the groundwork for future collaborations—ultimately reaffirming the significance of international alliances for domestic advancement. Indonesia's ambitious objectives, powered by investment from both Qatar and the UAE, signal hope for infrastructure development and economic prosperity.