Indonesia and UAE forge $3bn tourism development deal

Indonesia’s Ministry of State-Owned Enterprises (SOEs) inked a preliminary agreement with UAE-based property company Eagle Hills to enhance tourism infrastructure in Indonesia.

The Memorandum of Understanding (MoU), valued at $3bn, was signed on Wednesday during President Joko Widodo’s state visit to the UAE.

Bertemu dengan Presiden Persatuan Emirat Arab (PEA), Mohamed bin Zayed Al Nahyan (MBZ) untuk membahas kerja sama perdagangan, investasi strategis, energi bersih, iklim, serta sosial budaya.

Dalam bidang perdagangan, saya menyambut baik penyelesaian perundingan Comprehensive… pic.twitter.com/9bNBSaxiTF

— Joko Widodo (@jokowi) July 17, 2024

Minister of SOEs Erick Thohir and Mohammed Alabbar, founder and chairman of Eagle Hills Properties and Emaar Properties, formalised the agreement. The collaboration aims to significantly invest in Indonesia’s tourism sector, covering the development of hotels, airports, and various tourism destinations.

The ministry’s statement highlighted that the partnership seeks to improve infrastructure, particularly at Jakarta’s Soekarno-Hatta International Airport. Additionally, the collaboration will involve:

• Comprehensive investment in property development and tourism ecosystems.
• Knowledge transfer through joint studies, workshops, and training programs.
• Upgrading state-owned hotels to international standards.
• Creating new tourism destinations.

Minister Thohir expressed enthusiasm about the agreement, stating, “This landmark partnership is a crucial step for Indonesia’s tourism industry. By collaborating with Eagle Hills Properties, we aim to foster unprecedented growth and development in our hospitality sector.

“This initiative aligns with our national strategy to diversify the economy and position Indonesia as a leading global tourism destination. We are confident that this collaboration will not only enhance our infrastructure but also generate significant employment opportunities and drive sustainable economic growth across our archipelago.”

Mohammed Alabbar commented, “Indonesia possesses immense potential with its rich resources and tourist attractions. We believe Indonesia can increase its tourism sector’s contribution to GDP, and Eagle Hills is committed to supporting this endeavour.”

The MoU, effective for one year with the possibility of extension, does not specify a fixed timeline for the $3bn investment, allowing for flexible implementation. This partnership represents a significant milestone in Indonesia’s efforts to attract foreign investment and expertise to its tourism industry, potentially transforming the nation’s tourism landscape.

This collaboration is part of the Ministry of SOEs’ broader initiative to boost productivity and impact by partnering with global companies. Indonesia has established significant partnerships with international entities across various sectors, including healthcare, clean energy, and electric vehicle (EV) ecosystems.

Notable collaborations include partnerships with US-based Merck for vaccines, Swire Hong Kong in healthcare, UAE-based Masdar for clean energy, Canadian mining giant Vale-Base-Metal for nickel production, and with Ford and Volkswagen for EV manufacturing.

Minister Thohir emphasised, “Through these partnerships, we aim to optimise Indonesian SOE assets, creating value and exploring opportunities to maximise economic growth and job creation nationwide. These collaborations demonstrate that our SOEs are increasingly competitive and meet international standards, instilling confidence in our global partners.”

The signing ceremony underscored the strengthening ties between Indonesia and the UAE, with the two nations committed to enhancing bilateral cooperation and strategic investments in the future.

Read: Indonesian President Joko Widodo begins UAE state visit to strengthen bilateral ties