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Indonesia and UAE sign pacts worth nearly $10 billion

Christian Fernsby |
The state-owned oil producers of Indonesia and the United Arab Emirates signed on Wednesday last week an agreement for global oil and gas collaboration, targeting business opportunities with a potential value of $2.5 billion in the energy sector.

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The two companies and other firms in the two countries separately inked two more pacts worth $7.2 billion on the sidelines of Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed’s visit to the world’s most populous Muslim country.

Zayed held talks with President Joko Widodo at the presidential palace in the Indonesian capital after the landmark comprehensive strategic framework agreement was signed between Indonesia’s Pertamina and the Abu Dhabi National Oil Company (ADNOC).

They “gave particular emphasis on cooperation in the energy sector (and) welcomed the agreement between Pertamina and ADNOC on comprehensive partnership, covering collaborations from upstream to downstream business activities with a potential value of $2.5 billion,” according to a joint statement issued to the media.

The statement said the pact would create synergy between the two state-owned enterprises.

They also welcomed a cooperation agreement between Indonesia’s Chandra Asri Petrochemical, ADNOC and Austria’s energy company OMV for the development of a naphtha cracker and petrochemical complex with a potential value of $6 billion.

The statement also mentioned and welcomed another pact between Indonesia’s Maspion Group and Dubai Port World to develop a container terminal in Gresik in Indonesia’s East Java Province with a potential value of $1.2 billion.

The two leaders resolved “to further strengthen bilateral, regional and international cooperation on a wide range of issues,” as well as allowing Indonesia’s state-run realty developers to participate in projects in the UAE.

The crown prince and the president, according to the statement, shared their urge to collaborate in further developing the halal industry to take full advantage of the potential and opportunities of the booming global market.

Joko invited Zayed to attend the upcoming Halal Industry Summit to be held in Indonesia in October-November next year.

The two leaders reaffirmed their commitment to working “closely in promoting Islamic moderation and spreading the messages of peace, compassion and tolerance.”

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