UAE, Indonesia sign comprehensive economic partnership agreement

The UAE and Indonesia signed the comprehensive economic partnership agreement (CEPA) in July.

The pact was signed in Al Shati Palace in Abu Dhabi, and is designed to increase annual bilateral trade to $10bn within five years by removing trade barriers on a wide range of goods and services. The CEPA will accelerate more than $10bn of investment projects in priority sectors such as agriculture, energy and infrastructure, particularly logistics, while also encouraging cooperation in tourism, entrepreneurship and healthcare.

Over 80 per cent of UAE exports will gain immediate duty-free access to Indonesia, with the deal holding the additional potential to increase the total value of trade in services between the UAE and Indonesia to $630m by 2030. Progress in emerging sectors such as clean and renewable technology, cloud computing and automation will also be pursued, official news agency WAM reported.

This is the third such deal signed by the UAE this year, following an agreement with India in February and one with Israel in May.

Read: UAE and India sign Comprehensive Economic Partnership Agreement

Read: UAE, Israel sign comprehensive economic partnership agreement

UAE President Sheikh Mohamed bin Zayed Al Nahyan said, “The UAE has continued to chart a new era of prosperity built around our position as a global gateway for trade and investment. Indonesia is one of our closest strategic allies and our nations have worked together in the spirit of cooperation and unity for decades to promote social and economic development and unlock opportunities for our people. It is worth noting that Indonesia was the first nation with whom we began CEPA negotiations, and we very much welcome the new, more prosperous chapter in our partnership that promises to deliver.”

The signing of the Comprehensive Economic Partnership Agreement between the UAE & Indonesia, in the presence of President Joko Widodo, builds on the longstanding ties between our 2 nations & heralds the beginning of a new era of increased trade, investment & economic cooperation. pic.twitter.com/rkS1Zt5mMe

— محمد بن زايد (@MohamedBinZayed) July 1, 2022

“Like all our new trade deals, this is part of a dynamic plan to build a network of trade alliances with some of the world’s fastest growing economies,” Sheikh Mohamed added.

For his part, President Joko Widodo stressed that the agreement reflects an ambitious leap in cooperation between the two countries and a solid base that will push the bilateral relations to a new stage of development.

The UAE and Indonesia launched CEPA negotiations in September 2021 to expand economic opportunities. The UAE also pledged $10bn to the new Indonesia Investment Authority, while the Indonesian government became the largest Sukuk issuer on Nasdaq Dubai in May 2019.

Indonesia is Southeast Asia’s largest economy with a population of more than 270 million people, making it the world’s fourth-most-populous nation.

The event also included the signing of the following agreements and protocols:

• An MoU between the UAE’s Ministry of Health and Prevention (MOHAP) and Indonesia’s National Agency of Drug and Food Control to enhance their cooperation in drug and vaccine monitoring.
• The implementation of a joint project aimed at growing mangroves between the Ministry of Climate Change and Environment and the Coordinating Ministry for Maritime and Investment Affairs of Indonesia.
• A cooperation protocol between the Ministry of Defence and its Indonesian counterpart.
• An MoU between the Mohamed bin Zayed University for Humanities and Nahdlatul Ulama University of Yogyakarta.
• A contract for the purchase of a landing platform between the Tawazun Economic Council and Indonesian company SOE.