November 26, 2024
JAKARTA – Indonesia and the United Arab Emirates have inked several memorandums of understanding (MoUs) following President Prabowo Subianto’s work visit to Abu Dhabi on Saturday, during which he met his counterpart Sheikh Mohammed bin Zayed al-Nahyan, popularly known as MBZ.
The meeting between the two resulted in MoUs covering tourism, culture, health care, technology and industrial development, energy and mineral resources and investment. However, no further details were shared.
“We can cooperate in several fields, and we want to invite the UAE to actively participate in our economy,” Prabowo said on Saturday, as quoted from a statement published by his office.
Prabowo went on to say that his administration would prioritize ensuring food and energy security as well as focusing on the downstream industry, an area on which he is confident the two countries can work together.
MBZ reiterated that he is optimistic that trade flow between the two countries can be increased, with a goal of US$10 billion in total value over the next years, compared with last year’s $4.6 billion.
He cited that the two countries have established a comprehensive economic partnership agreement (CEPA) as well as bilateral local currency settlement, the latter of which allows two countries to trade using their respective local currencies instead of United States dollars.
The Energy and Mineral Resources Ministry said in a separate statement that the two countries have agreed an MoU related to “knowledge sharing” of policy, strategy and regulations.
The MoU also includes opening the door to carbon capture storage/carbon capture utilization storage (CCS/CCUS) funding as well as cooperation on biofuel, hydrogen technology development and the mineral supply chain.
“Through this MoU, not only do we strengthen the [bilateral] relationship, but we also create a concrete solution to deal with domestic and global energy challenges,” said Energy Minister Bahlil Lahadalia in the statement.
When meeting his counterpart Suhail Mohammed Al Mazrouei, the two talked about expediting Andaman oil and gas block development, gas supply to state-owned electricity monopoly PLN and procurement of up to 10 gigawatts (GW) of clean energy for Indonesia’s industrial estates.
Talks between the two also touched on cooperation between both countries’ state-owned aluminum producers, namely PT Inalum and Emirates Global Aluminum (EGA).
“I have asked Minister Suhail so the cooperation team can make a concrete deliverables timeline within the next two months,” Bahlil said.
Indonesia and the UAE have grown close in the past decade, particularly during former President Joko “Jokowi” Widodo’s administration.
Abu Dhabi helped Jakarta erect the country’s first wealth fund, the Indonesia Investment Authority (INA) in 2021.
Emirati state-owned energy company Masdar has also invested in building Southeast Asia’s largest floating solar PV plant in Cirata reservoir, West Java, which was realized last year.