The United Arab Emirates will invest $22.89 billion in Indonesia through a sovereign wealth fund, the government of Indonesia said in a statement on Monday (Jan 13).
The SWF will also include the participation of Japanese conglomerate Softbank and the International Development Finance Corporation (IFDC), according to the statement.
The fund will invest in the building of Indonesia’s new capital in East Kalimantan, whose construction is scheduled to begin in 2021 with relocation from Jakarta eyed for 2024.
The SWF will also participate in the development of the province of Aceh, where UAE is said to be interested in real estate.
Indonesian foreign minister Retno Marsudi said on her official twitter account on Monday that 11 business-to-business deals valued at $6.8 billion and generating a total of $22.89 billion in investments were signed.
The deals were signed in Abu Dhabi on Monday in conjunction with President Joko Widodo’s state visit.
She also tweeted that five memoranda of understanding were signed between the two governments.
In all, the MoUs and business deals cover a wide range of sectors, including education, health, agriculture, counter terrorism, waqf, new and renewable energy infrastructure, oil and gas, logistics, digital education, and capacity building.
Southeast Asia’s biggest economy attracted $22 billion in foreign direct investments in 2018, up 6.8% from 2017, according to the United Nations Conference on Trade and Development (UNCTAD).
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