The United Arab Emirates’ (UAE’s) new investment commitment of US$327 billion will bolster Indonesia’s vital infrastructure and national strategy, State-Owned Enterprises (SOEs) Minister Erick Thohir noted in a written statement received here, Friday.

“The trust of the UAE government and entrepreneurs will help to grow Indonesia’s economy and support our aspirations to build vital and strategic infrastructure with capital, not debt,” Thohir affirmed.

“Most of that investment will be allocated to various SOEs and support the ministries’ strategic priority,” he elaborated.

Out of the US$32.7-billion potential investment, around US$18 billion will be allocated to SOEs, such as oil and gas company Pertamina, state electricity company PLN, and port company Pelindo, he added.

This aims to support transformation in all these SOEs in order to expedite investment, business model innovation, and technological developments, he explained.

The Ministry of SOEs is planning several large projects for these SOEs, the minister highlighted.

These projects comprise renewable energy development from PLN, Pertamina’s refinery revitalization that will increase capacity and refineries in Indonesia, and harbor infrastructure construction across Indonesia through Pelindo and digital competitiveness development.

“The huge interest and commitment of global investors in Indonesia should be met by preparing our human resources as human capital, so that this fund and capital investment can be accurate,” Thohir affirmed.

“We should also reform our high logistics costs,” he added.

Thohir made this statement after attending the bilateral meeting between President Joko Widodo (Jokowi) and Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed Al Nahyan (MBZ) at Al-Shatie Palace, Abu Dhabi, the UAE, on Wednesday.

During the meeting attended by several ministers of Indonesia and UAE as well as entrepreneurs, it was declared that UAE is committed to investing up to US$32.7 billion in Indonesia.

UAE has, on several occasions, forged cooperation with Indonesia, including in the energy sector, The cooperation of PT PLN and Pertamina with two SOEs in UAE, Masdar and Abu Dhabi National Oil Company (Adnoc).

Moreover, the Abu Dhabi Investment Authority (ADIA) has committed to investing in the Indonesia Investment Authority (INA).

Source: Antara News