| 28 May 2024, Tuesday |

DP World and Indonesia’s sovereign wealth fund sign $7.5bn deal for seaport development

DP World and Indonesia’s sovereign wealth fund signed a deal worth $7.5 billion over a 30-year period to develop the South-East Asian country’s seaports.

According to an Indonesian embassy statement, the agreement, signed during Expo 2020 Dubai, aims to develop Indonesia’s logistics and seaports through capacity building and integrated seaport management.

“This will strengthen bilateral relations between the two countries based on the principle of mutual benefit and will encourage Indonesia as a maritime country to be more advanced and recognized in the world of international logistics,” said Husin Bagis, the Indonesian ambassador to the United Arab Emirates,

The agreement between the Dubai-based ports developer and the Indonesia Investment Authority is the first in a series of investment and business agreements reached between the two countries ahead of Indonesian President Joko Widodo’s November 3 and 4 visit to the UAE, according to the Indonesian embassy.

The UAE invested $10 billion with the Indonesia Investment Authority in March to fund projects in Indonesia. According to the UAE state news agency Wam, the funds will be used in sectors such as road and port infrastructure, tourism, and agriculture, as well as other promising industries that can contribute to Indonesia’s economic growth and social progress.

DP World and Canada’s Caisse de dépôt et placement du Québec (CDPQ) signed a long-term agreement with Indonesian conglomerate Maspion Group to build a port and industrial logistics park in East Java the same month.

Indonesia and the UAE have strong political, economic, and cultural ties. Diplomatic relations began in 1976, with the opening of the Indonesian embassy in Abu Dhabi on October 28, 1978. The UAE embassy in Jakarta opened in 1991, a year after Founding Father Sheikh Zayed visited.

  • The National News