Indonesia’s Ministry of State-Owned Enterprises (SOEs) has signed a preliminary agreement with UAE-based property company Eagle Hills to improve tourism infrastructure in Indonesia.
The Memorandum of Understanding (MoU), worth $3B, was signed on Wednesday during President Joko Widodo’s official visit to the UAE.
Minister of SOEs Erick Thohir and Mohammed Alabbar, founder and chairman of Eagle Hills Properties and Emaar Properties, formalised the agreement. The partnership aims to make substantial investments in Indonesia’s tourism sector, including the development of hotels, airports, and various tourist destinations.
The ministry’s statement highlighted that the collaboration aims to enhance infrastructure, particularly at Jakarta’s Soekarno-Hatta International Airport. Additionally, the partnership will involve:
- Extensive investment in property development and tourism ecosystems.
- Knowledge transfer through joint studies, workshops, and training programmes.
- Upgrading state-owned hotels to meet international standards.
- Creating new tourist destinations.
Minister Thohir expressed optimism about the agreement, stating, “This significant partnership marks a crucial milestone for Indonesia’s tourism industry. By working with Eagle Hills Properties, we aim to drive unprecedented growth and development in our hospitality sector.”
“This initiative aligns with our national strategy to diversify the economy and position Indonesia as a leading global tourism destination. We are confident that this collaboration will not only improve our infrastructure but also create significant employment opportunities and foster sustainable economic growth across our archipelago.”
Mohammed Alabbar commented, “Indonesia holds vast potential with its abundant resources and tourist attractions. We believe Indonesia can increase the tourism sector’s contribution to GDP, and Eagle Hills is committed to supporting this effort.”
The MoU, effective for one year with the option for extension, does not specify a fixed timeline for the $3B investment, allowing for flexible implementation. This partnership represents a significant step in Indonesia’s drive to attract foreign investment and expertise to its tourism industry, potentially reshaping the nation’s tourism landscape.
The collaboration forms part of the Ministry of SOEs’ broader initiative to enhance productivity and impact through partnerships with global companies. Indonesia has forged substantial partnerships with international entities across various sectors, including healthcare, clean energy, and electric vehicle (EV) ecosystems.
Notable collaborations include agreements with US-based Merck for vaccines, Swire Hong Kong in healthcare, UAE-based Masdar for clean energy, Canadian mining giant Vale-Base-Metal for nickel production, and partnerships with Ford and Volkswagen for EV manufacturing.
Minister Thohir stressed, “Through these partnerships, we aim to optimise Indonesian SOE assets, generate value, and explore opportunities to maximise economic growth and job creation nationwide. These collaborations demonstrate that our SOEs are increasingly competitive and meet international standards, instilling confidence in our global partners.”
The signing ceremony highlighted the deepening ties between Indonesia and the UAE, with both nations committed to strengthening bilateral cooperation and strategic investments in the future.
