The United Arab Emirates (UAE) is poised to significantly boost its investment footprint in Indonesia by focusing on green energy, housing, and defense sectors. This strategic partnership was highlighted during a meeting between National Economic Council Chair Luhut Binsar Pandjaitan and UAE's Energy and Infrastructure Minister Suhail Al-Mazroui in Jakarta on Friday. Central to this collaboration is a noteworthy $50 million donation aimed at supporting reforestation efforts across Indonesia.
According to Luhut, the forthcoming visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan is expected to finalize the funding arrangements. The UAE's commitment extends beyond reforestation; it has pledged to invest heavily in renewable energy projects, including geothermal, hydropower, wind energy, and solar power. Luhut expressed optimism about these initiatives, indicating they would help accelerate Indonesia’s transition toward sustainable economic growth.
Housing infrastructure also emerges as a priority area for this bilateral cooperation, with plans to assist Indonesia in building three million housing units. "The construction of 3 million homes is a significant focus, with the UAE offering both financing and construction support," Luhut stated. This ambitious housing project aims to address Indonesia’s considerable need for affordable housing, reflecting the UAE’s broader commitment to enhancing Indonesia’s socio-economic infrastructure.
Beyond these developments, discussions covered plans to raise international standards for key Indonesian ports, including Tanjung Priok and Makassar, and potential partnerships to strengthen the electricity sector, which is estimated to have around 62 gigawatts of capacity. The UAE's interest also spans the defense sector, where there is significant interest in co-producing light arms and assault rifles, indicating strong ties between the nations.
Highlighting the diplomatic dimensions of this agreement, Luhut noted the UAE's efforts to cultivate close ties between Indonesia’s current President Joko Widodo and President-elect Prabowo Subianto, ensuring stable bilateral relations moving forward. Such diplomatic endeavors are seen as pivotal for enhancing the mutual benefits arising from this partnership.
Other key strategic projects currently underway include the establishment of the Emirates-Indonesia Cardiology Hospital located in Surakarta, and the development studies for North Bali Airport intended to improve regional connectivity. Investments are also being directed toward downstream processing operations within the alumina sector, reinforcing the UAE's diverse investment strategy in Indonesia.
Further discussions included plans for creating a National Data Center, establishing a financial hub within Indonesia’s new capital (IKN), and constructing an International Mangrove Research Center in Bali. These projects signal not only environmental intentions but also economic growth initiatives aligned with global best practices.
Attention has also been directed toward managing ports and airports more effectively, especially within Jakarta and Bali, to boost transparency and operational efficiency. The UAE is exploring means to invest in state-owned hospitality assets through joint ventures, presenting another avenue for economic collaboration.
Luhut concluded, "These initiatives reflect a strong commitment to building a more advanced and sustainable future," expressing confidence about the continued growth of the partnership between Indonesia and the UAE. He added, "I am optimistic this cooperation will yield significant benefits for both nations, propelling us toward our ambitious development goals."
Overall, as Indonesia looks to leverage international partnerships for its development, the burgeoning relationship with the UAE showcases both nations’ aspirations for sustainable growth and enhanced cooperation across various sectors.