Indonesia, UAE marks 50 years of partnership, paving the way for shared prosperity

As Indonesia and the UAE celebrate 50 years of diplomatic relations in 2026, what opportunities could shape their partnership over the next decade?

Indonesia and the UAE share longstanding bonds of friendship, mutual respect and cultural affinity, strengthened by the fact that both are Muslim-majority countries. Our Golden Jubilee theme, “Golden Partnership: United in Harmony and Prosperity,” reflects our aspiration to build on these bonds for a stronger shared future. Indonesia, Southeast Asia’s largest economy, grew by 5.11 per cent in 2025, offering a vast market and growing industrial capabilities, while the UAE brings investment strength and global connectivity.

By combining these strengths, we can expand trade and investment and deepen cooperation in clean energy, food security, digital innovation and advanced manufacturing. Our ambition is for the next 50 years to translate our enduring friendship into lasting prosperity and tangible opportunities for both our peoples.

Following the meeting between President Prabowo Subianto and President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi earlier this year, what progress can we expect?

The leaders’ meeting in February reaffirmed the importance both countries attach to their strategic partnership. Our task is to translate that commitment into practical cooperation, with commercially sound projects, capable partners and sustained follow-through.

We already have a compelling example in the 145-megawatt Cirata floating solar power plant, developed through cooperation between Masdar and PLN. It demonstrates what Indonesian and Emirati partners can achieve together.

Looking ahead, we see opportunities to deepen cooperation in energy, food security, infrastructure, and technology. The emphasis should be on moving promising opportunities towards implementation, while creating long-term value through employment, skills development and stronger local supply chains.

How can the Indonesia–UAE Comprehensive Economic Partnership Agreement (CEPA) unlock further trade and investment?

The Indonesia–UAE CEPA, which entered into force on 1 September 2023, provides an important framework for expanding economic ties. Since 2023, bilateral trade has grown by approximately 27 per cent, reaching $6.42 billion in 2025. UAE investment realization in Indonesia also surged from $22.8 million in 2022 to $169.9 million in 2025, an increase of approximately 641 per cent.

Our priority now is to translate this momentum into tangible business opportunities by helping companies leverage preferential tariffs, comply with rules of origin and product standards, and connect with reliable partners. We see considerable potential in food and halal products, consumer goods, manufacturing and services, as well as joint ventures linking Indonesia’s production capabilities with the UAE’s distribution networks and global reach. Ultimately, CEPA’s success will be measured by the lasting partnerships and shared prosperity it creates for both countries.

How could local-currency transactions and improved cross-border payments benefit businesses and consumers?

Local-currency transactions give eligible businesses an additional option for settling trade and investment in rupiah and dirham. Bank Indonesia has established implementing rules for this framework, providing a practical basis for its use through participating banks.

For businesses, the potential benefits include more efficient currency conversion and additional tools to manage exchange-rate exposure. Wider use will depend on commercial needs, agreement between buyers and sellers, and competitive banking services. Raising awareness among businesses is therefore an important next step.

Alongside this, further progress on cross-border payment connectivity could make payments more convenient for tourists, consumers and smaller businesses. Together, these efforts can help reduce friction in our growing economic relationship.

Trade Expo Indonesia 2026 attracted UAE-based entrepreneurs. How can this growing business engagement strengthen two-way trade and investment, creating opportunities for companies in both Indonesia and the UAE?

The participation of 159 UAE-based entrepreneurs at Trade Expo Indonesia 2026, alongside trade commitments worth approximately $747.6 million up 121.55 per cent from 2025 demonstrates the growing potential of our economic partnership.

The next step is to translate this interest into lasting business relationships. Indonesian exporters can reach more buyers through the UAE’s trading networks, while UAE companies can access Indonesian suppliers, explore investment opportunities and develop new partnerships. By turning these connections into concrete business ventures, we can generate value for both economies.

As we celebrate 50 years of friendship, our ambition is to build on this momentum and create lasting prosperity and opportunities for the next generation.