The Indonesian Ministry of State-Owned Enterprises has signed a major agreement with United Arab Emirates (UAE)-based real estate developer Eagle Hills to bolster the country’s tourism sector and infrastructure. The memorandum of understanding (MoU), signed on July 18, 2024, outlines plans for investment of up to $3 billion in Indonesia’s tourism ecosystem.
The partnership, signed by State-Owned Enterprises Minister Erick Thohir and Eagle Hills Properties founder and chairman Mohamed Alabbar, aims to invest in destinations, real estate development and airports, develop a new tourism “ecosystem”, strengthen airport infrastructure and capacity, upgrade state-owned hotels to international standards, and transfer knowledge through joint research, workshops and training programs. A major focus will be the improvement of Jakarta’s Soekarno-Hatta International Airport.
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“This landmark agreement marks a pivotal moment for Indonesia’s tourism industry,” Thohir said. “By joining forces with Eagle Hills, we are setting the stage for unprecedented growth and development in the hospitality industry. This partnership is perfectly aligned with the national strategy to diversify the economy and establish Indonesia as a leading global tourism destination.”
Thohir added that the cooperation is expected to create greater employment opportunities and promote sustainable economic growth across Indonesia.
“Indonesia has great potential thanks to its resources and tourist destinations,” Alabbar said.[We believe] Indonesia can become more competitive and increase the tourism sector’s share of GDP. [gross domestic product] “Eagle Hills wants to support this effort.”
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The MoU is valid for one year with the possibility of extension; the $3 billion investment has no time limit, allowing for flexibility in its implementation.
The agreement is part of a broader effort by the Ministry of State-owned Enterprises to strengthen collaboration with global companies, aiming to generate more value from Indonesia’s SOE assets and maximise economic growth and job creation across the country.
Editor’s note: This article was created by AI based on a press release distributed by the Ministry of State-Owned Enterprises. It has been fact-checked and reviewed by TravelAge West editors.
