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RI renames toll road aft er UAE crown prince
Country committed $10 billion to Indonesia’s wealth fund
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T
he government renamed on Monday the Jakarta-Cikampek II elevated toll road after the United Arab Emirates (UAE) crown prince, Sheikh Mohamed Bin Zayed Al Nahyan, as Indonesia seeks to strengthen economic ties with a major investor.
The Rp 16.2 trillion (US$1.1 billion) toll road, which connects East Jakarta to Karawang in West Java, is the longest elevated toll road in Indonesia at over 36.4 kilometers, according to the government. Some 200,000 vehicles use it every day.
Indonesia renamed the toll road, which was officially opened in December 2019, in return for the UAE renaming a major street in Abu Dhabi to “President Joko Widodo Street” in October last year. The street is located near the embassy district.
Read also: UAE names street after Jokowi
“[The renaming] honors the UAE for 45 years of diplomatic relations in social, cultural and economic affairs. In economic terms, the UAE is one of Indonesia’s biggest investors, especially in infrastructure,” State Secretary Pratikno was quoted in a press release as saying on Monday.
The renaming is stipulated under Public Works and Housing Ministerial Decree No. 417/2021 that was issued on April 8.
Indonesia has seen strengthening economic ties with the UAE since President Joko “Jokowi” Widodo visited the Middle Eastern country in September 2015. Bin Zayed returned the favor with an Indonesia visit in July 2019.
Furthermore, the UAE, under Bin Zayed’s directive, recently committed US$10 billion to Indonesia’s sovereign wealth fund (SWF) with a focus on building infrastructure related to tourism, agriculture and transportation, among other fields.
The UAE’s commitment is larger than the combined investment of Japan, the United States, Canada and the Netherlands at $9.5 billion.
Read also: UAE commits $10 billion for Indonesia’s SWF
“The partnership between Indonesia and the UAE is starting to move from conventional fields in oil, gas and ports to new fields such as education, health, investment, agriculture, retail and so on,” said UAE Ambassador to Indonesia Abdulla Salem Obaid Salem Al Dhaheri.
Indonesia also opened last year a travel corridor with the UAE. The corridor allows essential business travelers to skip quarantine periods when moving between the two countries.
Read also: Indonesia reopens travel corridors amid fears of new virus variants
However, UAE foreign direct investment (FDI) into Indonesia reached $21.6 million last year, down 69 percent from 2019, following the pandemic-induced economic crunch, according to Indonesian Investment Coordinating Board (BKPM) data.
The toll road, which began construction in 2017, was developed by state-owned construction company PT Waskita Karya and publicly listed construction service company PT Acset Indonusa.
PT Jasamarga Jalanlayang Cikampek (JJC), a subsidiary of state-owned toll road operator PT Jasa Marga, manages the toll road, which allows smaller vehicles to bypass the regular, truck-congested Jakarta-Cikampek toll road.
The value of Indonesia’s exports to the UAE stood at $118.96 million in January, down by 6.76 percent from a year earlier, according to Statistics Indonesia (BPS). The import value was up by 13.32 percent year-on-year (yoy) to $162.58 million.
“With the official renaming of this road, may it improve the partnership and diplomatic ties between Indonesia and the UAE,” Public Works and Housing Ministry roadworks director general Hedy Rahadian said in the release.
