UAE & Indonesia Strengthen Ties in Energy, Housing, Defense
Businessicy – The United Arab Emirates (UAE) has expressed its commitment to strengthening cooperation with Indonesia across multiple sectors, including green energy, housing infrastructure, and defense. This partnership was confirmed by Luhut Binsar Pandjaitan, Chairman of the National Economic Council (DEN), following his meeting with UAE Minister of Energy and Infrastructure Suhail Al-Mazroui on Friday.
Luhut revealed that the UAE is ready to support Indonesia’s sustainable development initiatives. One of the key agreements includes a $50 million donation for forest reforestation. This funding will be implemented during the visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan (MBZ) to Indonesia.
“This collaboration highlights the UAE’s strong commitment to environmental sustainability in Indonesia,” Luhut stated in an official release on Saturday. He emphasized that the UAE sees Indonesia as a strategic partner for future investments, particularly in green energy solutions and infrastructure development.
Beyond environmental efforts, discussions also covered housing projects and defense sector partnerships. The UAE aims to contribute to Indonesia’s infrastructure growth by investing in modern and sustainable housing solutions. Additionally, both countries are exploring opportunities for defense cooperation to strengthen regional security.
Luhut noted that this collaboration aligns with Indonesia’s vision for economic growth and environmental sustainability. He expressed optimism that the UAE’s investment and strategic partnerships would bring long-term benefits to both nations.
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In the renewable energy sector, the UAE will invest in geothermal, hydropower, wind power, and solar panels. These initiatives aim to accelerate Indonesia’s transition to sustainable energy and boost economic growth. The UAE’s investment aligns with Indonesia’s strategy to expand its clean energy capacity and reduce carbon emissions.
The UAE has also committed to funding the construction of three million houses in Indonesia. This project will provide modern and sustainable housing solutions to support the country’s growing population and urban development.
Beyond energy and housing, the UAE will assist in upgrading Indonesia’s port infrastructure. The development plan includes modernizing the ports in Tanjung Priok and Makassar to meet international standards. These upgrades will improve logistics, trade efficiency, and economic connectivity. The cooperation also extends to the electricity sector, with a planned capacity expansion of up to 62 gigawatts (GW).
In the defense sector, the UAE has expressed interest in collaborating with Indonesia on weapons production. The partnership will focus on manufacturing light weapons and assault rifles, enhancing Indonesia’s defense capabilities and local production capacity.
One of the major initiatives includes the construction of the Emirates-Indonesia Cardiology Hospital in Surakarta. This state-of-the-art facility will enhance healthcare services and strengthen medical cooperation between the two nations.
The UAE has also expressed interest in developing North Bali Airport, which is currently in the study phase. This airport is expected to boost regional tourism and trade by improving international connectivity. Additionally, the UAE will support alumina processing projects, aligning with Indonesia’s downstream policy to enhance local mineral value and industrial growth.
Beyond infrastructure, the UAE plans to invest in Indonesia’s digital transformation. This includes financing the National Data Center, which will improve data security and technological advancements. The UAE will also participate in developing the Financial Center in the new capital city (IKN), further positioning Indonesia as a financial hub.
Environmental cooperation is another key area of UAE investment. The two nations will collaborate on establishing the International Mangrove Research Center in Bali. This initiative aims to protect coastal ecosystems and advance climate change mitigation efforts.
Furthermore, discussions included port and airport management in Jakarta and Bali. The UAE has also shown interest in investing in state-owned hotels through a joint venture scheme, strengthening the hospitality sector.
“These initiatives reflect a strong commitment to building a more advanced and sustainable future,” Pandjaitan stated. He expressed optimism that UAE-Indonesia cooperation will continue to expand, benefiting both countries in the long term.
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