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Indonesia secures $22.8B in investment from UAE

The United Arab Emirates plans to invest $22.8 billion in Indonesia through a sovereign wealth fund, joining SoftBank Group Corp. and the U.S. International Development Finance Corp. as investors, the Cabinet secretariat said Jan. 13.

The UAE will also invest in the development of Indonesia's Aceh region and the new capital city in Kutai Kartanegara, East Kalimantan. President Joko Widodo has asked Prince Sheikh Mohammed Bin Zayed to join the steering board to construct the capital city, the secretariat added, citing Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.

The UAE may also fund the economy's state-owned enterprises in sectors including petrochemicals.

The two countries agreed on 16 cooperation pacts, including 11 business agreements, following a bilateral meeting, according to Minister of Foreign Affairs Retno Marsudi.