The Indonesian Ministry of State-Owned Enterprises (SOEs) has signed a Memorandum of Understanding (MoU) with UAE-based developer Eagle Hills Properties to invest in Indonesia’s tourism and infrastructure sectors.
The agreement, signed in the presence of Indonesian President Joko Widodo and UAE President Sheikh Mohamed bin Zayed Al Nahyan, outlines plans for investments of up to $3 billion, according to an emailed joint statement.
Minister of SOEs’ Erick Thohir and Eagle Hills Properties’ Chairman Mohamed Alabbar signed the MoU, which focuses on property development, airport areas, and tourism destination ecosystems.
Indonesian Government inks massive tourism deal with UAE Developer
“Indonesia has significant potential due to its resources and tourism destinations. [We believe] Indonesia can be competitive and increase its proportion of the tourism sector’s contribution to the GDP [gross domestic product] – Eagle Hills would like to support this endeavour,” Alabbar said.
The MoU, effective for one year with the possibility of extension, includes plans for knowledge transfer, enhancement of airport infrastructure, upgrading of state-owned hotels, and development of new tourism destinations, according to the statement.
There is no fixed timeframe for the $3 billion investment, allowing for flexibility in implementation, the statement said.
This partnership is part of a broader initiative by the Ministry of SOEs to increase collaborations between Indonesian SOEs and global companies.
“This landmark agreement represents a pivotal moment for Indonesia’s tourism sector. By joining forces with Eagle Hills Properties, we are setting the stage for unprecedented growth and development in our hospitality industry. This partnership aligns perfectly with our national strategy to diversify our economy and establish Indonesia as a premier global tourism destination. We are confident that this collaboration will not only boost our infrastructure but also create significant employment opportunities and drive sustainable economic growth across our beautiful archipelago,” Thohir added.
Previous partnerships include agreements with US-based Merck for vaccines, Swire Hong Kong in the healthcare sector, and with UAE-based clean energy company Masdar. Several collaborations have also been made to help build Indonesia’s electric vehicle (EV) ecosystem, such as with Canadian mining giant Vale-Base-Metal for nickel production, and with Ford and Volkswagen for manufacturing, the statement said.
“We believe that through these partnerships, Indonesian SOE assets can be optimised through value creation and exploration to maximise economic growth and job creation across the country. These established partnerships demonstrate that our SOEs are increasingly more competitive and meet international standards that instil confidence in our global partners,” Thohir said.
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