Photo: Presidential Office

JAKARTA (TheInsiderStories) – Three mega projects worth of US$9.7 billion has been signed by Indonesia and United Arab Emirates (UAE) companies during the meeting between President Joko Widodo and Sheikh Mohammed bin Zayed Al Nahyan, Prince of Abu Dhabi of the UAE at the Bogor Palace today (07/24).

Beside business to business deals, the two countries also signed government to government agreement at investment, defense, tax treaty, industry, tourism, maritime and fisheries, also education and cultural.

“The UAE has a sovereign wealth fund a very large value of about US$1.3 trillion. That our intention to grab their investment,” said Foreign minister Retno Marsudi said after the meeting

She continued, the two countries signed 12 agreements. State-owned energy company, PT Pertamina and Abu Dhabi National Oil Company (ADNOC) agreed to collaborate upstream to downstream business activities with a potential value of US$2.5 billion.

Both Leaders also welcomed the cooperation agreement between PT Chandra Asri Petrochemical Tbk (IDX: CAPC), Mubadala and OMV plant to build naphta cracker and petrochemical complex with a potential value of $6 billion. While Maspion Group and Dubai Port (DP) World Asia expressed its commitment to work together to build a container terminal in the Industrial Estate at Gresik, East Java.

According Maspion Group CEO Alim Markus the two companies are planning to prepare an investment of $ 1.2 billion.

CEO of Pertamina, Nicke Widyawati said with this agreement, the company and ADNOC will explore opportunities for cooperation in upstream and downstream sectors. Projects under consideration include the participation of the UAE.

“This partnership with ADNOC will be an important milestone for Pertamina to secure energy supplies from abroad. ADNOC interest to participate in the oil and gas business in Indonesia is very significant support for Pertamina to ensure the availability and accessibility of energy for the people of Indonesia,” said Widyawati.

Sultan Ahmed Al Jaber, UAE State Minister added, this cooperation will showed ADNOC efforts to create value of the entire portfolio and its efforts in expanding international investment to become a truly global energy company.

While Mubadala and Chandra Asri has signed a Memorandum of Understanding to explore collaboration opportunities in the petrochemical sector in Indonesia. The agreement was signed by Musabbeh Al Kaabi, CEO of investment company Mubadala Oil & Petrochemicals, Rainer Seele, CEO of OMV and Erwin Ciputra, President Director of Chandra Asri and PT Chandra Asri Perkasa.

Furthermore, Maspion Group through its subsidiary PT Pelabuhan Indonesia Maspion along Dubai Port (DP) World Asia expressed its commitment to work together to build a container terminal in the Industrial Area, East Java. Markus said the port will have a capacity 3 million Teus.

Funds are disbursed Maspion Group will be used for the development of the container port in Gresik and industrial complex owned by Maspion. In a joint venture Maspion will have 51 percent stake.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com