UAE and Indonesia deepen ties through trade, clean energy and investment

“You do it because of the relationship, because of long-term engagements, and because of brotherhood,” said Abdulla Salem AlDhaheri, UAE Ambassador to the Republic of Indonesia and Non-Resident Ambassador to the Democratic Republic of Timor-Leste, highlighting the strong ties between the two nations.

The United Arab Emirates and Indonesia are seeking to strengthen their economic and diplomatic relationship through trade, investment, renewable energy and development initiatives, as both countries mark five decades of diplomatic relations.

AlDhaheri highlighted the growing partnership and the UAE Embassy's efforts to expand cooperation across different sectors.

Diplomatic relations between the UAE and Indonesia were established in 1976. Since then, cooperation has developed across economic, political, educational, cultural and humanitarian fields, supported by high-level visits and joint initiatives.

During the discussion, AlDhaheri highlighted the growth in economic engagement between the two countries, noting that trade balance increased from $1.5 billion in 2020 to $6.1 billion in 2025, reflecting the growing commercial relationship between the UAE and Indonesia.

A significant step was the UAE–Indonesia Comprehensive Economic Partnership Agreement (CEPA), signed on July 1, 2022, and entering into force on September 1, 2023. The agreement aims to improve market access, reduce trade barriers and create further opportunities for businesses in both countries.

Expanding investment opportunities

AlDhaheri emphasised that the relationship extends beyond trade, with investments increasingly covering renewable energy, infrastructure, logistics and other emerging sectors.

One example is the Cirata floating solar power plant in West Java, developed through cooperation between UAE renewable energy company Masdar and Indonesia’s PLN Group. The project demonstrates how the two countries are working together to support clean energy development.

The ambassador also discussed cooperation in geothermal energy and other energy projects, highlighting opportunities for investment, knowledge transfer and technical collaboration.

Such partnerships reflect Indonesia’s growing demand for sustainable energy solutions and the UAE’s experience in developing and financing renewable energy projects.

Tourism and aviation cooperation

Tourism is another area offering opportunities for closer engagement.

AlDhaheri pointed to Indonesia’s potential as an international tourism destination, particularly in areas beyond Bali, where islands and coastal destinations are attracting greater interest from international hotel operators and investors.

He also highlighted the role of aviation connectivity in supporting tourism and business exchanges between the two countries.

The operation of Emirates’ Airbus A380 services to Bali was among the developments discussed, alongside efforts to strengthen air connectivity and cooperation involving UAE and Indonesian airlines.

Improved aviation links, he noted, could contribute to attracting visitors, supporting tourism-related investment and creating additional opportunities for local businesses.

Development beyond commercial interests

Beyond investment and trade, the UAE’s engagement with Indonesia includes humanitarian and community development initiatives.

AlDhaheri discussed cooperation in education, healthcare and infrastructure, including projects aimed at improving access to essential services and supporting local communities.

Among the initiatives highlighted was a cardiovascular hospital in Solo, equipped with advanced medical facilities and designed to strengthen specialised healthcare services.

The ambassador emphasised that such projects demonstrate the importance of long-term cooperation and mutual respect, with engagement extending beyond commercial returns.

Looking towards the next 50 years

As the UAE and Indonesia mark 50 years of diplomatic relations in 2026, AlDhaheri stressed the importance of building on past achievements while identifying opportunities for future cooperation.

The UAE Embassy in Jakarta continues to engage with Indonesian government institutions, businesses and international partners to facilitate investment discussions and connect stakeholders across different sectors.

With the CEPA providing a framework for expanding economic cooperation, both countries have opportunities to strengthen business partnerships while exploring new areas of investment.

For AlDhaheri, the relationship is built not only on economic interests but also on mutual understanding, respect and long-term engagement.

He highlighted the strong bonds between the two nations.“We do this because of the brotherhood. We do this because we like each other. We do this because we respect each other.

As cooperation expands across clean energy, tourism, healthcare, education and infrastructure, the next phase of UAE–Indonesia relations will focus on translating shared priorities into projects that benefit both countries.