JAKARTA – Indonesia and the United Arab Emirates have struck nearly $23 billion in business deals, including agreements in the energy sector and on infrastructure projects.
The investments will be made through an Indonesian sovereign wealth fund set to involve Japan’s Softbank and US International Development Finance Corporation, Indonesian officials said January 13.
The figure includes nearly a dozen deals signed after a meeting between Indonesian President Joko Widodo and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed al-Nahyan in Abu Dhabi, Widodo said on social media.
About $12.6 billion was linked to an agreement between Indonesia’s state energy firm Pertamina and Abu Dhabi National Oil Company to develop a petrochemical plant in West Java, the Indonesian Foreign Ministry said.
Other investments include deals in ports, renewable energy and agriculture.
Widodo said he would focus his second term on luring foreign investment to South-east Asia’s biggest economy and keep up a multibillion-dollar infrastructure drive.
Jakarta said the UAE agreements could include investment in Indonesia’s planned new capital on Borneo as it moves away from congested Jakarta. Crown Prince Mohammed was asked to provide advice for the development of the new capital, said Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan.