Indonesia’s Ministry of State-Owned Enterprises (MSOE) has signed a memorandum of understanding with UAE property developer Eagle Hills to boost the country’s tourism and infrastructure sectors.
The memorandum was signed by MSOE Minister Eric Thohir and Eagle Hills Chairman Mohamed Alabbar.
The MoU will be valid for one year but may be extended by mutual agreement. There is no time limit for the $3 billion investment, allowing for flexibility in its implementation.
Joining forces for progress
Commenting on the agreement, Thohir said: “By joining forces with Eagle Hills, we are laying the foundation for unprecedented growth and development in the hospitality industry. This partnership is perfectly aligned with our national strategy to diversify our economy and establish Indonesia as a leading global tourism destination.”
The Minister added that he was confident that the collaboration would strengthen the country’s tourism infrastructure, create significant employment opportunities and promote sustainable economic growth across the country.
Meanwhile, Alabbar said: “Indonesia has great potential thanks to its resources and tourist destinations. [We believe] Indonesia can become more competitive and increase the tourism sector’s contribution to its gross domestic product. Eagle Hills is eager to support this effort.”
Building a tourism ecosystem
The partnership involves investment of up to $3 billion in Indonesia’s tourism and infrastructure ecosystem, key aspects of which include comprehensive investments in destinations, airports, hospitality-centric real estate, and the development of new tourism ecosystems.
It also calls for strengthening infrastructure and capacity at Indonesia’s main airport, upgrading state-run hotels to bring them up to global standards, and knowledge transfer through joint research, workshops and training programs.
