Indonesia Secures Key Investment Deals with UAE in Energy and Dairy Sectors

Jakarta's recent diplomatic engagement with the United Arab Emirates has culminated in critical investment agreements that could enhance Indonesia's sustainability efforts in both agriculture and energy sectors.

During a recent visit to Abu Dhabi, President Prabowo Subianto and UAE leader Mohamed bin Zayed Al Nahyan brokered deals primarily focused on boosting Indonesia's milk production along with energy diversification projects. A memorandum of understanding (MoU) was signed between Indonesia’s Agricultural Ministry and Al Ain Farms, a prominent Emirati dairy company, to invest in milk production. The expansion plan aligns with Indonesia's aim to import 200,000 dairy cattle to meet increasing milk demand, spurred by Prabowo’s school meal initiatives.

In renewable energy, Indonesia's state-owned PLN and Abu Dhabi's Masdar have agreed to collaborate on a 100-megawatt floating solar plant at West Java's Jatigede Dam. Also, an upgrade of the Cirata photovoltaic plant capacity is underway, a project that stands as the largest Middle Eastern venture in Indonesia, with a $145 million investment value.

The historical significance of these deals traces back to former President Joko "Jokowi" Widodo's inauguration of Southeast Asia's first floating solar plant in West Java in 2023, marking Indonesia's commitment to sustainable energy practices.

While further details are anticipated, these steps signify a strategic bilateral partnership invigorated by a shared vision for sustainable economic growth. The UAE, having invested $32.7 million across 476 projects in Indonesia in 2024, sees a promising trajectory in these sectors.

In a brief comment, President Prabowo shared that the UAE leader intends to visit Jakarta soon, signifying strengthening diplomatic ties.