President’s Visits in November Accrued USD58.8 Billion Investment

   

President Joko Widodo’s November travels to the global conference on climate change (COP26) in Glasgow, Scotland, and continue to Abu Dhabi and Dubai in the United Arab Emirates (UAE) brought back USD58.8 billion worth of investment projects. Amongst all, USD44.6 billion came from the Indonesia-UAE Investment Forum event.

In the forum, President shared the government’s continuous commitment to downstream and stopping the export of mineral ores and crudes. “After aluminum and nickel are prohibited from being exported, probably copper will follow. We want investors to build added-value industries in Indonesia,” shared Widodo.

From Glasgow, the President continued his visit to Abu Dhabi to formally discuss bilateral issues. He then traveled to Dubai.

The president attended National Day when he visited Dubai Expo 2020.

The President conveyed three sectors to be prioritized under the Indonesia-UAE cooperation. First, the construction of Indonesia’s new capital city; second, investment in the energy transition sector; and lastly, trade through the Comprehensive Economic Partnership Agreement (CEPA) that aims to be ready in March 2022. All UAE’s commitments are planned to be actualized before the current presidential term ends.

“Investment realization will begin in 2022, and everything aims to be realized by 2023 or at the latest by 2024,” stated The Minister of Investment/Chairman of BKPM Bahlil Lahadalia at the “Ministry of Investment’s Visit to UAE” press conference (11/11). Of the USD44.6 billion UAE investment, Ministry of Investment/BKPM will manage the USD26.6 billion while INA will manage the remainder.

The interest to invest in Indonesia came from various industry players in UAE. This includes Al Dahra Group (dairy products), Yas Holding (agriculture), Damac Properties (property), AMEA Power (renewable energy), and Emirates Global Aluminum (aluminum smelter) which will partner with Indonesia’s mining state-owned enterprise PT Inalum which now is a member of Mind ID, state own holding company of mining.

The Minister of Foreign Affairs Retno Marsudi also shared other UAE commitments, including cooperation between the Indonesia Investment Authority (INA) and the Abu Dhabi Growth Fund; between INA and Dubai-based logistics company DP World; and between Pertamina and Masdar, an Abu Dhabi energy company.

Foreign Direct Investment to boost Indonesia’s contribution to world’s net-zero emissions

During President Widodo’s visit to Glasgow, Scotland, for the global conference on climate change (COP26), he accumulated a total investment commitment of USD9.2 billion. In COP26, he reiterated Indonesia’s commitment to transition the nation’s energy consumption from fossil fuels to green energy.

President Widodo reported on Indonesia’s tremendous efforts to develop an ecosystem for electric cars and build Southeast Asia’s largest solar farm. Green industrial zones that use clean energy are also constructed extensively throughout the archipelago, including one development in North Kalimantan that will become the largest green industrial district in the world.

“However, this is not enough. We are a country with large potential to be green, and we need supports and contributions from developed countries,” said President Jokowi at the Scottish Event Campus, Glasgow, Scotland (1/11). “Indonesia can contribute more quickly to the world’s net-zero emissions. The question is, how much contribution can developed countries provide us? What technology transfer can be provided?”

To attract foreign investors, the government offers various incentives for ventures in the renewable energy sector. Investors in the sector can enjoy 5-30% tax allowances, up to 100% tax holiday, and import duty exemption for goods, machinery, equipment, and raw materials used for production.

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