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

This state visit marks the one-year anniversary of the CEPA, which was signed in July 2022, and took effect a year later

by Marisha Singh

July 17, 2024

Image credit: WAM

Indonesia’s President Joko Widodo began his state visit to the UAE on July 16. President Widodo and his delegation were welcomed in Abu Dhabi by the UAE’s President Sheikh Mohamed bin Zayed Al Nahyan at the Presidential Airport.

The welcoming party included Sheikh Hamdan bin Mohamed bin Zayed Al Nahyan, Deputy Chairman of the Presidential Court for Special Affairs; Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, Advisor for Special Affairs at the Presidential Court, and other senior officials. As a mark of respect, several UAE airforce jets escorted President Widodo’s aircraft upon entering UAE airspace.

Before his departure, President Widodo stated, “On Tuesday, my entourage and I will pay a visit to Abu Dhabi, the UAE. At the meeting, we will discuss, among other things, various efforts to increase economic cooperation and strategic investment.” He highlighted the rapidly strengthening relations between Indonesia and the UAE, particularly in economic and investment sectors.

جرت له مراسم استقبال رسمية .. #رئيس_الدولة يستقبل الرئيس الإندونيسي في قصر الوطن#الإمارات_ترحب_بالرئيس_الإندونيسي #وام https://t.co/gmlQARUfAb pic.twitter.com/CieOIBnn0f

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Indonesia-UAE CEPA

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

This state visit marks the one-year anniversary of the CEPA, which was signed in July 2022 and took effect a year later. At the time of signing, Sheikh Mohamed bin Zayed remarked that the agreement would usher in “a new era of increased trade, investment, and economic cooperation.”

The trade agreement is a key component in the joint efforts towards sustainable development.

During the visit, the two leaders are set to witness the signing of a business Memorandum of Understanding (MoU) between entrepreneurs from both countries.

Additionally, the UAE-Indonesia CEPA is expected to elevate the value of bilateral non-oil trade from $4.08bn to over $10bn within five years. With more than 80 per cent of UAE exports to Indonesia now exempt from customs duties, the deal is expected to increase the combined value of services trade to $630m by the end of the decade.

Historic visit

The visit is also expected to strengthen cooperation in clean energy sectors, such as solar energy projects in the Cirata Reservoir, and expand ties in nuclear energy, investment, and financial sectors.

Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs, highlighted during the UAE-Indonesia Joint Committee in Abu Dhabi in 2023 that both nations have closely coordinated in areas including renewable energy, tourism, aviation, agriculture, food security, infrastructure, transportation, health, artificial intelligence, education, and culture.

President Widodo’s visit celebrates 47 years of Indonesia-UAE relations and is among his final state visits before stepping down from office in October, marking the end of his second and final term as president.

Read: UAE-Cambodia CEPA goes into effect: Here’s how free trade pacts lift growth