UAE–Indonesia economic ties strengthen with investments exceeding US$14 B

  • Published on 01/12/2025 GMT+7

  • Reading time 3 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

The United Arab Emirates has invested more than US$14 billion (Rp233 trillion) in Indonesia, while bilateral trade has risen 20 percent year-on-year to US$5.5 billion (Rp91.5 trillion) and development cooperation between both nations also amounts to US$260 million, underscoring deepening strategic ties.

“Our partnership continues to grow rapidly across politics, the economy, trade, and development,” UAE Ambassador to Indonesia Abdulla Salem Al Dhaheri said during the UAE’s 54th National Day celebration in Jakarta on Thursday, November 27, 2025.

Al Dhaheri highlighted UAE’s accelerated national development, driven by innovation and advanced technology.

“The UAE has achieved remarkable progress ‒ from a knowledge-based economy to space exploration, clean energy, artificial intelligence, and high-tech industries,” he said.

In the first half of 2025, UAE’s non-oil foreign trade expanded by 24 percent, supported by economic diversification and strengthened global partnerships. The country is also ranked the world’s second-largest hub for new foreign direct investment projects and manages sovereign assets totaling US$2.49 trillion.

The UAE has recently launched the first Arabic-language AI model in the ‘Falcon’ series and inaugurated a 5-gigawatt AI technology complex in collaboration with the United States. According to Al Dhaheri, these advancements offer new opportunities for cooperation with Indonesia in energy, infrastructure, and technology.

Looking ahead to 2026, the two countries plan to commemorate 50 years of diplomatic relations ‒ a milestone they hope will elevate their strategic partnership.

Indonesia’s Coordinating Minister for the Economy Airlangga Hartarto emphasized the UAE’s role as a key trading and investment partner in the Middle East. The UAE is also one of the largest markets for Indonesian palm oil.

In renewable energy, the partnership includes the Cirata Floating Solar Power Plant ‒ developed by Masdar and Indonesia’s state power utility PLN ‒ which began commercial operations in November 2023.

“Indonesia is considering extending the project to increase its capacity,” Airlangga noted.

He added that the Indonesia–UAE Comprehensive Economic Partnership Agreement (CEPA), effective since September 2023, is expected to boost Indonesia’s exports by up to US$4.2 billion by 2030. A Joint Commission Meeting held in Abu Dhabi in November reviewed progress and explored new projects in trade, investment, clean energy, and even defense industries.

“Next year marks the 50th anniversary of our diplomatic ties, and we must prepare strategic projects to celebrate this partnership,” Airlangga said.

Beyond economic collaboration, the UAE continues to play an active role as an ASEAN sectoral dialogue partner and a supporter of global priorities including religious tolerance, climate action, and regional stability in the Middle East.

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