The UAE and Indonesia, the biggest economy in South-East Asia, plan to boost co-operation in the energy and mineral resources sector, further strengthening ties between the two countries.
The two countries signed a declaration of intent to encourage co-operation between government entities as well as private and government-owned companies, state news agency Wam reported on Thursday.
They will focus on encouraging investment and commercial activities and establishing joint projects in both countries.
The agreement includes developing technology related to the energy sector, including carbon capture and storage, biofuel and others.
The development came after a joint meeting between the officials of the two countries at the Abu Dhabi International Petroleum Exhibition and Conference that concluded on Thursday.
The meeting was chaired by Sharif Al Olama, undersecretary of the UAE's Ministry of Energy and Infrastructure for Energy and Petroleum Affairs, and Tutuka Ariadji, director general of oil and gas at Indonesia's Ministry of Energy and Mineral Resources.
The latest collaboration between the two countries comes as the UAE and Indonesia focus on strengthening trade and economic ties.
In July this year, the two nations signed a Comprehensive Economic Partnership Agreement as they aim to increase mutual non-oil trade to $10 billion in the next five years from $3bn currently.
The UAE is also increasing its investments in Indonesia.
In 2020, Adnoc signed a preliminary agreement with 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.
In March, the UAE invested $10bn with the Indonesia Investment Authority to spend on infrastructure and tourism projects in the country.
Indonesian state-owned agro-chemicals company PT Pupuk Indonesia, is also expanding its operations to the UAE and opened its representative office in Dubai this week. The company is looking for trade opportunities in ammonia, urea and other products.