JACARTA: The United Arab Emirates is expected to develop several major infrastructure projects in Indonesia, including a multi-million dollar tourist resort in its westernmost province of Aceh, confirmed the chief ministers of the Emirates and Indonesia.
A series of trade agreements was signed by the two nations during a visit to Jakarta by the UAE’s Minister of Energy and Infrastructure, Suhail Al-Mazroui, on Friday. The deals are part of a $ 22.9 billion deal signed during Indonesian President Joko Widodo’s visit to Abu Dhabi in January last year. The investment business, which also covers energy, infrastructure and mining, is seen as the largest in Indonesian history.
The tourism resort development project, which, according to the Indonesian Coordinating Minister for Maritime Affairs and Investments, Luhut Pandjaitan, is valued at $ 300 million and $ 500 million, is due to start in the Aceh Singkil district in May.
Aceh, a semi-autonomous province on the northwestern tip of Sumatra Island, is the only region in Indonesia with a Muslim majority that imposes sharia.
“I think that within two months, we can see the progress of this project in the Singkil area,” said Pandjaitan during a joint conference with Al-Mazroui.
Although officials did not disclose further details, in response to a question from Arab News, Al-Mazroui said that some islands off the main coast of Aceh have been identified for the resort.
“Hopefully the team will finish (that) and then we will move on to the next phase of having some definitive deals,” he said.
The project agreement was signed by the governor of Aceh, Nova Iriansyah, and Amine Abide, executive director of Murban Energy, a United Arab Emirates company whose investment portfolio includes the development of luxury resorts in the Maldives and Seychelles.
According to a note from the Indonesian ambassador to the United Arab Emirates, Husin Bagis, one of the considerations for the development of the project in Aceh is that it is only five hours by plane from the United Arab Emirates. He said Abide visited nine islands in the Aceh Singkil district that were selected for the project.
Among the deals signed in Jakarta, which Al-Mazroui said were sequels to those signed in Abu Dhabi last year, is a $ 1.2 billion deal between UAE logistics company Dubai Port (DP) World and the Maspion group from Indonesia to develop a port and industrial zone in Gresik, East Java.
Other agreements signed on Friday, Panjaitan said, include an agreement between the Indonesian state-owned weapons manufacturer Pindad and the UAE’s small arms manufacturer Caracal to develop assault rifles, drones and defense system technologies.
LuLu Group International is also expected to enter the Southeast Asian country, as its CEO also signed a property lease on Friday to open a hypermarket outside Jakarta.
Minister Al-Mazroui hinted that other agreements could also take place in the wake of the newly formed economic ties between the United Arab Emirates and Indonesia.
“Some new businesses have been considered, which have not been discussed before, and that is the nature of the relationship,” he said.
Al-Mazroui is the first UAE government official to visit Indonesia since a bilateral safe travel corridor agreement was signed in July last year.
He and members of his delegation are in Indonesia to participate in a series of events during Amazing Week Indonesia-Emirates, held in Jakarta, Solo, Bandung and Surabaya from March 1 to 8.