Daily Management Review

Indonesia, UAE sign nearly $23B deal


Indonesia signed 11 business agreements with the United Arab Emirates totaling 314.9 trillion rupees ($ 23 billion). This was announced by Indonesian President Joko Widodo on his Twitter page.

Widodo was present at the signing of the agreements with the Crown Prince of Abu Dhabi, Sheikh Mohammed bin Zayed, over the weekend during his official visit to Abu Dhabi.

The Abu Dhabi National Oil Company (ADNOC) has signed agreements with the Indonesian companies PT Pertamina and PT Chandra Asri Petrochemicals in the petrochemical and gas sectors, Reuters writes with reference to the UAE state news agency WAM. In particular, an agreement was signed on the supply of ADNOC 528 thousand tons of liquefied petroleum gases (LPG) by Pertamina by the end of 2020.

Widodo also said that five agreements have been signed between governments. The agreements related to education, health, agriculture and the fight against terrorism, said Indonesia's Foreign Minister Retno Marsudi in a statement.

Widodo and the Crown Prince also discussed a plan to create a sovereign investment fund, said Minister for the Coordination of Maritime and Investment Projects Luhut Panjaitan.

According to the minister, the Japanese Softbank and the US Corporation for financing international development (U.S. International Development Finance Corporation, IDFC) are also interested in participating in the fund.

The UAE will be able to use this fund to invest in the development of the proposed new capital of Indonesia.

The new capital will be located in the province of East Kalimantan on the island of Kalimantan.

Widodo said the transfer of the administrative center would cost a little less than $ 33 billion, of which the state would provide 19%.

source: bloomberg.com