The United Arab Emirates (UAE) is ready to invest in Indonesia's green energy, housing and defense sectors, including providing $50 million to support reforestation efforts. The announcement was made by the Chairman of the National Economic Council (DEN), Luhut Binsar Pandjaitan, following a meeting with the UAE Minister of Energy and Infrastructure, Suhail Al-Mazroui, in Jakarta last week.
The funds are expected to be delivered during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to Indonesia.
The UAE has also pledged to invest in renewable energy projects, including geothermal, hydropower, wind and solar energy, to accelerate Indonesia's transition to sustainable economic growth.
Major UAE Investment in Indonesia
In addition to investments in green energy and reforestation, the United Arab Emirates (UAE) is also keen on developing Indonesia’s infrastructure, housing, and defense sectors.
During a meeting with the UAE Minister of Energy and Infrastructure, Luhut Binsar Pandjaitan revealed that the partnership includes improving the management of ports and airports in Jakarta and Bali to enhance efficiency and transparency. The UAE has also expressed interest in investing in state-owned hospitality businesses through joint ventures.
In the housing sector, the UAE is committed to supporting the construction and financing of three million homes in Indonesia. Meanwhile, the development of key ports such as Tanjung Priok and Makassar will be upgraded to international standards, aligning with a potential 62 GW electricity sector collaboration.
In defense, the UAE has shown interest in partnering on the production of light weapons and assault rifles. The country’s strong commitment to bilateral relations is further reflected in a planned meeting between President Prabowo Subianto and President Joko Widodo, initiated directly by Sheikh Mohamed bin Zayed Al Nahyan.
Additionally, several strategic projects were discussed, including the completion of the Emirates–Indonesia Cardiology Hospital in Surakarta, a feasibility study for North Bali Airport development, and an alumina downstream processing initiative. The UAE will also invest in the development of a National Data Center, a Financial Center in the new capital (IKN), and the establishment of the International Mangrove Research Center in Bali.
UAE Supports Indonesia's Development
The UAE Minister of Energy and Infrastructure, Suhail Mohamed Al Mazrouei, emphasized the UAE's readiness to support Indonesia in achieving its target of 8% economic growth. According to him, large-scale investments are essential to accelerate the economy, especially under the leadership of President Prabowo Subianto.
This statement was made during the 3rd UAE-Indonesia Roundtable in Jakarta last week, where Suhail stressed the importance of strengthening bilateral cooperation. He also emphasized the need to address various obstacles hindering UAE investment in Indonesia in order to optimize cooperation between the two countries.