DP World and Indonesia's sovereign wealth fund signed an agreement to develop the South-East Asian country's seaports in a deal valued at an estimated $7.5 billion over a period of up to 30 years.
The agreement, signed during Expo 2020 Dubai, aims to develop Indonesia's logistics and seaports through capacity building and integrated seaport management, according to a statement by the embassy of Indonesia.
"This will bring closer bilateral relations between the two countries based on the principle of mutual benefit and will encourage Indonesia as a maritime country to be more advanced and recognised in the world of international logistics,” Husin Bagis, the Indonesian ambassador to the UAE, said.
The agreement between the Dubai-based ports developer and Indonesia Investment Authority is the start of a series of investment and business deals agreed between the two countries as Indonesia's President Joko Widodo visits the UAE on November 3 and 4, the Indonesian embassy said.
In March, the UAE invested $10bn with the Indonesia Investment Authority to spend on projects in Indonesia. The funds will be used in sectors such as road and port infrastructure, tourism and agriculture, as well as other promising industries that can contribute to Indonesia's economic growth and social progress, UAE state news agency Wam reported at the time.
In the same month, DP World and Canada's Caisse de dépôt et placement du Québec (CDPQ) signed a long-term agreement with Indonesian conglomerate Maspion Group to build a port and industrial logistics park in East Java.
The UAE and Indonesia enjoy strong political, economic and cultural ties. Diplomatic relations began in 1976, with the Indonesian embassy in Abu Dhabi opening on October 28, 1978. The UAE embassy in Jakarta was opened in 1991, a year after a visit by Founding Father Sheikh Zayed.
Other business deals signed by UAE companies with Indonesia recently include a preliminary agreement between Abu Dhabi National Oil Company and Indonesia’s Pertamina and Chandra Asri to explore the possibility of developing a crude-to-petrochemicals complex in Indonesia.
Abu Dhabi’s clean energy company Masdar also signed a power-purchase agreement with Indonesia’s state electricity company, Perusahaan Listrik Negara, to develop the country’s first floating solar photovoltaic plant.