Jakarta. The United Arab Emirates (UAE) is set to invest in Indonesia's green energy, housing, and defense sectors, with plans for a $50 million donation to support reforestation, according to National Economic Council Chair Luhut Binsar Pandjaitan.

The announcement came after Luhut’s meeting with UAE's Energy and Infrastructure Minister Suhail Al-Mazroui in Jakarta on Friday. The funding is expected to be formalized during the upcoming visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan to Indonesia.

On renewable energy, the UAE has committed to investing in geothermal, hydropower, wind energy, and solar panel projects in Indonesia. Luhut said these initiatives aim to accelerate the country’s transition to sustainable economic growth.

Housing infrastructure is also a priority area for collaboration, with the UAE agreeing to assist in constructing and financing three million housing units across Indonesia.

"The construction of 3 million homes is a significant focus, with the UAE offering both financing and construction support," Luhut said.

The discussions also touched on raising international standards for key Indonesian ports, including Tanjung Priok and Makassar, and potential partnerships in the electricity sector, which has an estimated capacity of 62 GW. In the defense sector, the UAE has shown interest in co-producing light arms and assault rifles.

In a statement issued Saturday, DEN highlighted the UAE’s efforts to foster closer ties between Indonesia’s current President Joko Widodo and President-elect Prabowo Subianto, demonstrating the UAE’s commitment to maintaining stable bilateral relations.

Luhut also provided updates on several ongoing strategic projects. These include the Emirates-Indonesia Cardiology Hospital in Surakarta, studies for the development of North Bali Airport, and downstream processing in the alumina sector. Additional UAE investments include a National Data Center, a financial hub in Indonesia’s new capital city (IKN), and the establishment of an International Mangrove Research Center in Bali.

Discussions further covered port and airport management in Jakarta and Bali to enhance transparency and efficiency. The UAE is also interested in investing in state-owned hospitality assets through joint ventures.

“These initiatives reflect a strong commitment to building a more advanced and sustainable future,” Luhut said. “I am optimistic that the partnership between Indonesia and the UAE will continue to grow and bring benefits to both nations.”

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