President Joko “Jokowi” Widodo and UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan (MBZ) have agreed to develop a financial center in Indonesia’s new capital, Nusantara, and enhance cooperation in the nickel industry from mining to electric vehicle production.
The agreement was achieved during a meeting of both leaders at the Qasr Al Watan Presidential Palace in Abu Dhabi on July 16, 2024.
Jokowi announced that Indonesia and the UAE have reached an agreement to build a financial center in Nusantara, located in Panajam Paser Utara, East Kalimantan. This development is expected to drive economic growth and attract investment to the region.
“We only discussed two important matters, although there were other topics. The first is the construction of a financial center in IKN, and the second is cooperation related to nickel from upstream to downstream,” Jokowi told reporters at Si Jalak Harupat Stadium in Bandung, West Java, on Friday, July 19, 2024.
Regarding the financial center, Jokowi said that a memorandum of understanding (MoU) has been signed between the IKN Authority and the Dubai International Financial Center (DIFC).
The MoU outlines the technical aspects of developing the financial hub and managing investment systems. Additionally, both nations are discussing recruitment and bureaucratic processes for the operation of the financial center. The collaboration aims to attract investments from Dubai to the financial center in IKN.
“We hope the financial center in IKN will soon be established and operational,” Jokowi said.
On the topic of nickel, Jokowi highlighted the UAE’s intention to collaborate on comprehensive nickel development in Indonesia. This partnership will cover the entire value chain, from mining to processing nickel ore in high-pressure acid leach (HPAL) hydrometallurgy smelters.
These smelters will convert low-grade nickel into mixed hydroxide precipitate (MHP) or mixed sulphide precipitate (MSP), essential materials for precursor and cathode battery production for electric vehicles. The cooperation also includes plans for electric vehicle production in Indonesia.
“We are approaching two more countries. If successful, we expect to control 80-85 percent of the global EV market,” Jokowi said.
This strategic partnership with the UAE is poised to significantly enhance Indonesia’s economic landscape, particularly in the new capital Nusantara and the burgeoning nickel industry.
