Indonesian President wraps up UAE visit. What were the key outcomes?

Indonesian President Joko Widodo concluded a successful two-day state visit to the United Arab Emirates, during which he engaged in a series of high-level meetings aimed at bolstering bilateral relations between the two nations.

During the visit, President Widodo was awarded the Order of Zayed by UAE President Sheikh Mohammed bin Zayed Al Nahyan. This prestigious honor, the highest civilian accolade the UAE bestows upon world leaders and heads of state, recognizes President Widodo's significant efforts to strengthen ties between Indonesia and the UAE.

The trip culminated in the announcement of several Memoranda of Understanding (MoUs) and agreements aimed at strengthening cooperation between the allies across various sectors.

Agreements and collaborations

Indonesia’s Ministry of State-owned Enterprises has signed a $3 billion tourism deal with UAE-based property company Eagle Hills, which includes the development of hotels and tourism destinations in the Southeast Asian country, as well as infrastructure enhancements at Jakarta's Soekarno-Hatta International Airport.

The central banks of Indonesia and the UAE signed another MoU to link their payment systems, facilitating faster, more efficient, transparent, and affordable cross-border payments, and it is expected to enhance financial connectivity between the two nations.

During the bilateral meeting, the presidents witnessed the announcement of six more key agreements and MoU:

• Nusantara Capital Authority (OIKN) and the Dubai International Financial Centre Authority to establish a financial center in Nusantara.
• Indonesia's National Research and Innovation Agency (BRIN) and Emirates Nuclear Energy Corporation (ENEC) to collaborate on nuclear energy.
• The finance ministries of Indonesia and the UAE sign an MoU on public finance management.
• A framework agreement between PT Dirgantara Indonesia and PAL Aerospace on technology transfer for maritime patrol aircraft and anti-submarine warfare.
• PLN Icon+ and an Emirati state-owned renewable energy company signed an MoU for a joint assessment and commercial and industrial study on rooftop solar installations in Indonesia.
• The Indonesian Coordinating Ministry for Maritime Affairs and Investment and the Mohamed bin Zayed Species Conservation Fund to develop the Sheikh Mohamed bin Zayed and Joko Widodo International Mangrove Research Center in Bali.

A strategic partnership

The UAE is one of Indonesia’s principal strategic partners in the Middle East and was the first Middle Eastern country to sign a Comprehensive Economic Partnership Agreement (CEPA) with Indonesia.

This agreement, which was enacted in September of last year, is projected to significantly boost bilateral trade. The CEPA aims to increase the value of bilateral non-oil trade from $4.08 billion to over $10 billion within the next five years, with more than 80% of UAE exports to Indonesia now exempt from customs duties.

President Joko Widodo's visit to the UAE not only solidifies diplomatic ties but also paves the way for enhanced collaboration in economic, technological, and environmental realms, heralding a promising future for bilateral relations.