UAE to invest $10bn in Indonesia’s sovereign wealth fund

The UAE has said that it will invest $10bn into Indonesia’s sovereign wealth fund, the Indonesia Investment Authority.

The investments will focus on strategic sectors in Indonesia, including infrastructure, roads, ports, tourism, agriculture, and other promising sectors that have potential for growth and can contribute to growth as well as economic and social progress.

The decision to invest the amount was carried out under the directives of Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, reported UAE state news agency WAM.

Joko Widodo, President of Indonesia, last month announced the members of the Indonesia Investment Authority’s Board of Supervisors and Board of Directors, which was formed under the Omnibus Job Creation Law passed in October 2020.

Read: Dubai trade with Indonesia reaches Dhs5.4bn in 2020

The establishment of the board is considered crucial in the governance and development of the investment system in Indonesia.

The Indonesian sovereign fund aims to implement strategic projects that support national development, including the development of infrastructure and the construction of the new capital in Kalimantan.

The two countries recently concluded the UAE-Indonesia Week 2021, during which several cooperation agreements were signed relating to ports, logistics, strategic and defence industries, energy, tourism, the creative economy and mangrove farms.

Dubai’s DP World recently partnered with Caisse de dépôt et placement du Québec (CDPQ) investment group to sign a $1.2bn agreement with Indonesia’s Maspion Group to construct an international container port and industrial logistics park in Gresik in Indonesia.

Read: Dubai’s DP World inks $1.2bn agreement to build port and logistics park in Indonesia’s Gresik

A joint venture company called DP World Maspion East Java will be established between DP World, CDPQ and Maspion Group, the first of its kind in the Indonesian transportation sector involving a foreign direct investor and a private sector Indonesian company.
DP World Maspion East Java will become the sole operator of the container port with a design capacity of up to three million twenty-foot equivalent units