How Indonesia Plans to Attract More UAE Investment After Bilateral Talks
Indonesia is positioning itself for increased Emirati investment following high-level talks between President Prabowo Subianto and UAE President Sheikh Mohamed bin Zayed Al-Nahyan in Abu Dhabi this week. The discussions, part of Subianto’s multi-nation tour that included the US, UK, and Jordan, signal both countries’ commitment to deepening economic ties.
Building on a Strong Foundation
Indonesia’s relationship with the UAE has strengthened significantly in recent years. Under former President Joko Widodo, Jakarta secured more than $46 billion in investment commitments from the Gulf state in 2021. The foundation laid then now supports continued expansion.
The two countries signed a Comprehensive Economic Partnership Agreement in 2022—Indonesia’s first with a Gulf nation and the UAE’s first with a Southeast Asian country. The deal, which took effect in 2023, eliminates approximately 99 percent of existing tariffs and commits to increasing Indonesia’s services exports to the UAE by 6 percent. It also establishes mutual recognition of each country’s halal certification, removing a potential barrier to trade.
Growing Trade Numbers
The agreement has delivered measurable results. Bilateral trade reached more than $6.4 billion in 2025, according to Indonesian Trade Ministry data—a nearly 27 percent increase from approximately $5 billion the previous year.
Cabinet Secretary Teddy Indra Wijaya said following the latest talks that “the UAE wants to increase its investment in Indonesia.” While no specific amounts were disclosed, the statement signals continued momentum.
Beyond Trade
The discussions extended beyond traditional trade to encompass renewable energy, technology, artificial intelligence, sustainability, food security, and culture. The UAE’s state news agency WAM quoted President Sheikh Mohamed as noting “the continuing progress of long-standing UAE-Indonesia relations, which are founded on mutual trust, respect and shared interests.”
He reaffirmed “the UAE’s commitment to advancing its development and economic partnership with Indonesia for the benefit of both countries and their peoples.”
A Golden Anniversary
This year marks the 50th anniversary of diplomatic relations between Indonesia and the UAE. The milestone provides occasion for reflection on how far the relationship has come—and ambition for where it might go.
For Indonesia, deeper ties with the UAE offer access to Gulf capital, energy resources, and a strategic partner in the Middle East. For the UAE, Indonesia provides a gateway to Southeast Asia’s largest economy, a growing market for its investments, and a partner in sectors from food security to renewable energy.
What It Means
Subianto’s visit, coming early in his presidency, signals that strengthening ties with the UAE is a priority for his administration. The investment commitments secured by his predecessor provide a foundation; the task now is to convert those commitments into completed projects and expanded cooperation.
The trade numbers show momentum. The CEPA provides the framework. And with both countries marking 50 years of diplomatic relations, there is reason to celebrate—and reason to work toward even closer ties in the decades ahead.
Also Read:
FBI Fires More Agents Linked to Trump Classified Document Investigation
Tensions Rise as Explosions Hit Ukrainian Capital Before Geneva Talks
