July 24, 2019 / 1:08 PM / a month ago

Indonesia, UAE firms sign agreements worth $9.7 billion: Indonesian government

Indonesia's president Joko Widodo talks with Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed Al Nahyan as they prepare to plant a tree during a welcoming ceremony at the presidential palace in Bogor, Indonesia, July 24, 2019., 2019. REUTERS/Willy Kurniawan

JAKARTA (Reuters) - Companies in Indonesia and the United Arab Emirates have signed agreements worth a total of $9.7 billion during an official visit of Abu Dhabi crown prince to the Southeast Asian country, the Indonesian government said on Wednesday.

Sheikh Mohammed bin Zayed met with Indonesian President Joko Widodo in at the presidential palace in Bogor, south of the capital Jakarta.

On the sidelines of the visit, the Abu Dhabi National Oil Company (ADNOC) signed an agreement with Indonesia’s state-owned energy company PT Pertamina for oil and gas collaboration in both countries and globally, which has a potential value of $2.5 billion, the foreign ministry said in a statement.

ADNOC said the deal covered projects in the United Arab Emirates’ upstream oil and gas sector as well as refining and petrochemicals, LNG, LPG, aviation fuel and fuel retail opportunities in Indonesia.

Indonesia’s Chandra Asri Petrochemical (TPIA.JK) also signed an agreement with Abu Dhabi’s investment company Mubadala and Austrian energy firm OMV (OMVV.VI) to explore opportunities in petrochemicals, the three companies said in a joint statement.

The foreign ministry said the three were exploring the development of a naphtha cracker and petrochemical complex, with a potential value of $6 billion.

Indonesia’s Maspion Group signed an agreement with Dubai Port World to develop a container terminal in Gresik in East Java, the ministry said, valuing the deal at $1.2 billion.

Both leaders also talked about increasing investment in Indonesia’s tourism sector and allowing Indonesian state construction firms to participate in projects in the United Arab Emirates, according to the statement.

President Widodo, after winning an election in April, has pledged more investment opportunities to create jobs in Southeast Asia’s largest economy.

Reporting by Agustinus Beo Da Costa; editing by David Evans

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