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UAE Investment in Indonesia Reaches $6b

DUBAI — Big UAE companies have invested heavily in major projects in the various islands of Indonesia, netting more than $6 billion in deals, inspite of the global economic meltdown and terrorism threats in Jakarta.

The biggest investment comes from Limitless which is building Jakarta’s Business Development Centre at a cost of $1.7 billion. It is followed by RAK Mineral and Metals Investment, or RMMI, which is building a port and industrial estate in Sumatra Island for $1.5 billion, and the RAK Investment Authority, which is engaged in the mining of coal in Sumatra and Kalimantan at a cost of $1.2 billion. Other leading companies investing in Indonesia are DP World, in a joint venture with PT Pelindo Seri, for the construction of a container port in Surabaya for $175 million; Dubai Drydock World with its Indonesian partner Fabtech International, is constructing a shipyard at the Special Economic Zone of Batam for $500 million; Emaar’s eco-tourism project in Lombok in a partnership with the Indonesian government for $600 million; and Etisalat for its telecommunication project costing 
$438 million.

Indonesia Ambassador Wahid Supriyadi told Khaleej Times that UAE companies are investing in Indonesia as the country has not been affected much by the economic downturn. “Even the IMF projects that Indonesia will be able to reach an economic growth of 4.3 per cent this year next to China and India.” He also said that the government is also serious in its fight against corruption

“Indonesia has also passed a New Investment Law, which makes it easier for foreign investors to set up business and to avail of tax incentives.”

“Some of these project areas like Batam is under the Special Economic Zone, which offers excellent investment climate for investors,” he added.

The ambassador also said that despite the significant increase in trade with the UAE by 44 per cent from $1.5 billion to $2.18 billion in 2008, Indonesia’s trade with the UAE slowed down during the first six months this year by 39.24 per cent or from $1.13 billion to $689 million. To revive its trading strength, the ambassador held a Businessmen Cocktail on Tuesday night in Abu Dhabi to promote Jakarta to UAE businesses. He also invited them to attend the Trade Expo in Jakarta set for Otober 28 to 
November 1.

Ambassador Supriyadi hoped that more would participate despite the economic meltdown.

“Last year, 94 buyers from the UAE realised business at $10.28 million in the Trade Expo. “Indonesia’s 140 businessmen, mostly in the Small and Medium Industries, will also come by November 24 to 25 this year to join in the Dubai Global Village. I have also organised governors from various areas in Indonesia to visit Dubai and Abu Dhabi in an effort to further increase our trade relations with UAE.”

· lily@khaleejtimes.ae