UAE committed to invest up to US$5 billion in Indonesia

Photo by The Insider Stories
JAKARTA (TheInsiderStories) – The United Arab Emirates (UAE) is interested to invest up to US$5 billion in energy, infrastructure and agriculture sectors in Indonesia, showing growing interest of this Arab peninsula country in Indonesia.
“We are very glad that the agreement is signed today. We can assure you, from our side that we will work very hard with the minister and team to deliver the promise,” UAE  Minister for Energy Suhail Mohammed Faraj Al Mazroui said in a joint press conference with his Indonesian counterpart Minister for Energy and Mineral Resources Ignasius Jonan.
Minister Jonan said the two countries discussed potential investment opportunities for UAE, including in areas of oil and gas, solar energy, infrastructure such as port as well as agriculture. At the meeting, Indonesia also proposed to buy LPG and crude oil directly from UAE national oil company without the involvement of third parties.
At present, one UAE oil and gas company is already operating in Indonesia, taking part in the development of Rubi field in Makassar Strait.
At present, UAE’s investment in Indonesia reached above US$2 billion. “The potential investment we are looking at is up to US$5 billion new investment and could be primarily in ports, real estate development, energy, solar, conventional power generation, oil and gas, food and the agriculture business as well,” Minister Suhail said.
He added both parties also discussed about other issues such as tax and investment protection. “We need to also sign some important agreements like taxation,  investment protection. We have agree to follow up the agreement as well. We see a potential of couple of gas assets investment. So we could end up $7 billion investment in the future,” Minister Suhail added.
He noted that there has been an agreement between Pertamina and National Oil Company (NOC) of UAE and discussion about direct transportation. “We have a meeting next week, and we would like to see Indonesia in the table next week,” he said.
Jonan added that UAE is also interested to cooperate with Pertamina to jointly develop oil and gas blocks that will be handed over to Pertamina. There are currently around ten oil and gas blocks, whose contracts will expire in the next two-three years. These blocks contracts will not be extended and instead handed over to Pertamina. (*)