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'Largest deal in Indonesia's history': UAE pledges to invest in deal worth $22.8b

The UAE, Indonesia’s largest Middle Eastern investor last year, adds to a list of countries, including Japan, China and the US, to which the Jokowi administration is approaching to secure $137 billion for infrastructure projects, most of which are energy-related.

Norman Harsono (The Jakarta Post)
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Jakarta
Tue, January 14, 2020

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'Largest deal in Indonesia's history': UAE pledges to invest in deal worth $22.8b President Joko "Jokowi" Widodo (left) chats with Abu Dhabi Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan from the United Arab Emirates (right) during the President's visit to Abu Dhabi on Sunday, Jan. 12, 2019. (Presidential Palace Press Bureau/Laily Rachev)

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he United Arab Emirates (UAE) will invest in a third of US$22.8 billion worth of development projects in Indonesia as Southeast Asia’s largest economy looks to the world’s wealthiest countries to fund infrastructure and human capital development projects.

The investment plan was announced during President Joko “Jokowi” Widodo’s official two-day trip to Abu Dhabi that ended Monday. Foreign Minister Retno LP Marsudi said that, under the deal, the UAE would invest $6.8 billion into five government-to-government projects and 11 business-to-business projects in agriculture, education, energy and mining, among other sectors.

“As the President conveyed, this deal with the United Arab Emirates might well become the largest deal in Indonesia’s history,” Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said in a statement on Monday.

The UAE, Indonesia’s largest Middle Eastern investor last year, adds to a list of countries, including Japan, China and the US, to which the Jokowi administration is approaching to secure $137 billion for infrastructure projects, most of which are energy-related.

Read also: Jokowi kicks off UAE visit with renewable energy deal as Indonesia seeks funding for energy ambitions

Luhut said the UAE would also invest in Indonesia’s new capital city and the upcoming sovereign wealth fund (SWF), which is currently being developed by the State-Owned Enterprises Ministry. “Those that will join the SWF include the UAE, Softbank, the IDFC (International Development Finance Corporation) from the United States and other parties that would want to join,” he said.

The IDFC, a fund competing with China’s Belt and Road Initiative, which finances developing countries, pledged to invest $5.5 billion in Indonesia during its first international trip to Indonesia on Friday.

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