Prabowo-UAE's MBZ Talks Result in Energy, Dairy Investment Deals
Jakarta. President Prabowo Subianto’s recent talks with his Emirati counterpart Mohamed bin Zayed Al Nahyan had resulted in a series of deals, some expected to help Indonesia boost dairy production and ditch coal power.
The Emirati leader, popularly known by his initials MBZ, hosted Prabowo at Abu Dhabi’s Qasr Al Shati Palace on Wednesday local time. According to the presidential press bureau, Prabowo did not leave the palace empty-handed, as Indonesia secured some fresh deals with the United Arab Emirates (UAE).
Indonesia’s Agricultural Ministry and Emirati dairy giant Al Ain Farms had signed a memorandum of understanding (MoU) on a milk production investment. State-run electricity company PLN has also teamed up with Abu Dhabi renewable energy company Masdar to build a 100-megawatt floating solar plant in West Java’s Jatigede Dam in a new MoU. According to the press bureau, both sides have agreed to increase the capacity of the Cirata floating photovoltaic plant -- another project run by PLN and Masdar.
The Jakarta Globe has tried to reach out to both PLN and the Agricultural Ministry for comments. More details regarding the deals mentioned above would likely be announced later.
The Cirata project has often been hailed as one of, if not the biggest, Emirati investment in Indonesia to date. Ex-President Joko "Jokowi" Widodo launched the 195-megawatt peak plant in 2023. Located in West Java, it becomes Southeast Asia's first floating solar plant. PLN Nusantara Renewables, a subsidiary of the utility firm, holds a 51 percent stake in the project, while the remaining 49 percent belongs to Masdar. Reports show that the Cirata plant boasts an investment value of $145 million.
As for the dairy deal, Indonesia has been in talks with foreign partners to boost its milk production. Indonesia aims to import 200,000 dairy cattle this year as the demand for higher quality milk increases following Prabowo’s massive schoolmeal rollout. Indonesia lets foreign companies invest in its domestic cattle farming, so the country can boost production without burdening the state spending.
The UAE invested $32.7 million in Indonesia throughout 2024, the government reported. The Emirati investment went to 476 projects that year. Not long after meeting MBZ, Prabowo made a brief comment on the bilateral talks, although he did not go into detail on the signed MoUs.
“He [MBZ] expressed his intent to visit Jakarta. I told him that our country would gladly welcome him at all times,” Prabowo told reporters.
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