JAKARTA – Data from the United Arab Emirates Investment Coordinating Board (BKPM) shows that investment contributions from these countries are far more dominant than other Middle Eastern countries.
Deputy Minister of Investment Cooperation BKPM Wisnu Wijaya Soedibjo said that the dominance of investment from the UAE occurred because UAE investors tend to be proactive in investing in Indonesia.
In addition to these factors, Wisnu said that the fact was also inseparable from the presence of BKPM representatives in Abu Dhabi.
Besides the UAE, Wisnu said there were still three countries that had great potential to invest in Indonesia. The three countries in question are Saudi Arabia, Kuwait and Qatar.
Also read: UAE Ready to Invest US $ 22.8 Billion for New Capital in East Kalimantan
During January to September 2019, investment realization from the UAE reached US $ 68.2 million, far higher than other Middle Eastern countries such as Turkey (US $ 24.82 million) and Saudi Arabia (US $ 1.83 million).
From year to year, only the UAE is aggressively and tends to be stable in realizing investment in Indonesia, while other Middle Eastern countries still tend to fluctuate.
By sector, UAE investment was largely in the food crops and plantation sectors with a realization of US $ 88.3 million.
Jokowi to the United Arab Emirates
Meanwhile, President Joko Widodo yesterday along with the Crown Prince of Abu Dhabi and Deputy Chief Commander of the United Arab Emirates Armed Forces Mohamed bin Zayed witnessed the exchange of 16 agreements between Indonesia and the United Arab Emirates.
The sixteen agreements consist of 5 cooperation agreements between two governments and 11 others between business actors in the world of the country.
On that occasion President Jokowi appreciated the significant progress in the cooperative relations between Indonesia and the United Arab Emirates. “The UAE will remain one of the important partners in Indonesia’s economic cooperation, especially in the investment sector,” he said, Sunday (12/1).
Meanwhile, the Crown Prince said that relations between the two countries could still be improved. “We can start a new era of closer relations between the two countries,” said Crown Prince Mohamed bin Zayed.
The cooperation agreement consists of 5 intergovernmental agreements in the fields of religion, education, agriculture, health, and counter terrorism. In addition, there are also 11 business agreements including in the fields of energy, oil and gas, petrochemicals, ports, telecommunications, and research with an estimated total investment value of US $ 22.89 billion or around Rp 314.9 trillion.
There are also five collaborations between the government or G to G. The first Memorandum of Understanding (MoU) is between the Minister of Religion of the Republic of Indonesia and the General Authority of Islamic Affairs and Endowments of the United Arab Emirates regarding cooperation in the field of Islamic religious affairs and endowments.
The second MoU between the Minister of Education and Culture of the Republic of Indonesia and the UAE Minister of Education related to cooperation in the field of education. Third, the MoU between the Minister of Agriculture of the Republic of Indonesia and the UAE Minister of Climate Change and Environment related to cooperation in agriculture and food diversification.
The four MoUs between the Indonesian Minister of Health and the UAE Minister of Health and Prevention related to health cooperation. The fifth MoU between BNPT and the National Intelligence Service of United Arab Emirates related to counter terrorism cooperation.
While cooperation between business people or B to B, Indonesia and the UAE agreed to work together on projects worth US $ 22.89 billion in which the UAE will participate in the 30% range or around US $ 6.8 billion.
Investment in the hotel and restaurant business sector is ranked second with a realization of US $ 63.6 million, followed by investment in the real estate sector with investment realization reaching US $ 26.4 million.