JAKARTA - Indonesia has secured a US$ 22.8 billion investment from the United Arab Emirates through a sovereign wealth fund set up to finance infrastructure development and energy projects.
The UAE plans to invest in Indonesia’s planned new capital city in East Kalimantan and properties in Aceh, Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan was quoted as saying by Bloomberg. In addition, the UAE will also invest in energy and telecommunications based on agreements signed during President Joko Widodo’s visit to Abu Dhabi where he met UAE Crown Prince Mohammed bin Zayed Al Nahyan.
According to Cabinet Secretary Pramono Anung, Mr Widodo’s visit to Abu Dhabi also oversaw the signing of a total of 16 agreements between both countries including 11 deals related to oil and gas, petrochemicals, ports, and telecommunications, with Crown Prince Mohammed being invited to take part in the development of Indonesia’s planned new capital.
Aside from the UAE, Japan’s SoftBank Group and the US International Development Finance Corp have also expressed interest in investing in Indonesia’s planned new capital.
Last year a number of UAE companies including Abu Dhabi National Oil Co and Mubadala Investment signed agreements with Indonesia companies to explore investment opportunities in sectors such as oil and gas, ports, and tourism. (MS)