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UAE and Indonesia reach historic trade deal

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Sheikh Mohamed Bin Zayed and Joko Widodo perform the Jumuah prayer at the Sheikh Zayed Grand Mosque.

President His Highness Sheikh Mohamed Bin Zayed Al Nahyan witnessed the signing of the UAE-Indonesia Comprehensive Economic Partnership Agreement alongside Indonesian President Joko Widodo in Abu Dhabi on Friday.

It is the third such agreement signed by the UAE this year, after CEPAs with India and Israel, and aims to increase annual bilateral trade to $10 billion within five years by removing trade barriers on a wide range of goods and services, creating new opportunities for UAE exporters.

The agreement was signed at Al Shati Palace in Abu Dhabi by Abdullah Bin Touq Al Marri, Minister of Economy; and Zulkifli Hasan, Minister of Commerce of Indonesia.

Sheikh Mohamed Bin Zayed said: “The UAE has continued to chart a new era of prosperity built around our position as a global gateway for trade and investment. Indonesia is one of our closest strategic allies and our nations have worked together in a spirit of cooperation and unity for decades to promote social and economic development and open up opportunities for our people.

It should be noted that Indonesia was the first nation with which we entered into negotiations on CEPA, and we warmly welcome the new and more prosperous chapter of our partnership which promises to deliver on its promises.

“Not only do I hope this agreement will create a new platform for cooperation, investment and knowledge transfer, but will also provide us with new tools to tackle future challenges and opportunities together. Like all of our new trade agreements, this is part of an aggressive plan to establish a network of trade alliances with some of the fastest growing economies in the world. This will put us on the path to prosperity outlined in our Projects of 50 initiative which aims to make the UAE a truly global business hub,” added Mohamed Bin Zayed. For his part, President Joko Widodo welcomed the signing of the Comprehensive Economic Partnership Agreement between his country and the UAE.

This step is the culmination of the distinguished historical relations between the two countries and their continuous efforts to advance these relations to a broader and more comprehensive level, he said, stressing the concern of the leadership of the two countries and their determination that made this agreement a reality.

The Indonesian president stressed that the agreement reflects an ambitious leap in cooperation between the two countries and a solid foundation that will push the bilateral relations to a new, more prosperous stage of faster development that will meet the aspirations of the two friendly peoples.

Under this far-reaching trade deal, more than 80% of UAE exports will enjoy immediate duty-free access to Indonesia. The agreement also has the potential to increase the total value of services trade between the UAE and Indonesia to $630 million by 2030. Simplified customs procedures and a focus on digital trade will enable businesses in the United Arab Emirates to do business with Southeast Asia more easily than ever before. largest economy, which is expected to grow 5.4% in 2022.

As two of the most dynamic and forward-looking economies in the Islamic world, CEPA will lead to increased development and new opportunities for the growing Islamic economy, estimated at $3.2 trillion. by 2024. It will also accelerate more than $10 billion in investment projects. in priority sectors such as agriculture, energy and infrastructure, in particular logistics, while encouraging future cooperation in the fields of tourism, entrepreneurship and health. Rapid technological advancements in emerging sectors such as clean and renewable technologies, cloud computing and automation will also be continued, driving greater social and economic progress in both countries. The historic agreement will also unleash the potential of the South-South Corridor and accelerate the transition to a new global economic center – the new Asian future. The UAE and Indonesia launched CEPA negotiations in September 2021 as part of a shared vision to expand economic opportunities, boost post-COVID recovery and mark a new phase of strategic cooperation.

The two countries have continued to explore closer collaboration by working together on a wide range of strategic projects, including the world’s largest floating solar power plant. The UAE has also pledged $10 billion to the new Indonesian Investment Authority, while the Indonesian government became the largest issuer of Sukuk on Nasdaq Dubai in May 2019.

The event included the signing of the following MoUs and Protocols:

. A Memorandum of Understanding between the Ministry of Health and Prevention (MOHAP) and the Indonesian National Drug and Food Control Agency to enhance their cooperation in drug and vaccine monitoring. The MoU was signed by Abdul Rahman bin Mohammad Al Owais, Minister of Health and Prevention; and Retno Marsudi, Minister of Foreign Affairs.

. The implementation of a joint project to grow mangroves between the Ministry of Climate Change and Environment and the Coordinating Ministry of Maritime Affairs and Investment of Indonesia, which was signed by Mariam Bint Mohammed Saeed Hareb Almheiri, Minister of Climate Change and Environment; and Retno Marsudi, Minister of Foreign Affairs.

. A cooperation protocol between the Ministry of Defense and its Indonesian counterpart, signed by Mohammed bin Ahmed Al Bowardi, Minister of State for Defense Affairs; and Prabowo Subianto, Minister of Defense of Indonesia.

. A Memorandum of Understanding between Mohamed Bin Zayed University of Humanities and Nahdlatul Ulama University of Yogyakarta signed by Dr. Hamdan Musallam Al Mazrouei, Advisor to the Court of the Crown Prince of Abu Dhabi; and Yahya Cholil Staquf, President of the Nahdlatul Ulama Association.

. A contract for the purchase of a landing platform between the Tawazun Economic Council and the Indonesian company “SOE”, which was signed by Tareq Abdul Raheem Al Hosani, CEO of Tawazun; and Kaharuddin Djeno, CEO of PT PAL.

The signing ceremony took place in the presence of Sheikh Mansour Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; Sheikh Hamed bin Zayed Al Nahyan, member of the Abu Dhabi Executive Council; Sheikh Abdullah Bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation; Sheikh Mohammed Bin Hamad Bin Tahnoun Al Nahyan, Special Affairs Advisor at the Ministry of Presidential Affairs; Suhail Al Mazrouei, Minister of Energy and Infrastructure; Dr. Sultan Bin Ahmed Al Jaber, Minister of Industry and Advanced Technologies; Dr. Thani Bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade; Dr. Anwar Bin Mohammed Gargash, Diplomatic Advisor to the President of the United Arab Emirates, and several other officials.

W.A.M.