The two countries have thriving bilateral trade, which is expected to reach $4 billion by 2023.
The United Arab Emirates has signed a memorandum of understanding (MoU) with Indonesia to strengthen cooperation in public financial management.
The agreement covers a wide range of financial practices, including macroeconomic policies, fiscal policies, debt management and climate change finance. The MoU aims to promote knowledge exchange through visits, training programs, workshops and seminars. In addition, a Joint Council will be established under the agreement to ensure the effective implementation of the agreement and monitor the ongoing cooperation between the two countries.
Global Strategic Partnership, Shared Prosperity
Mohamed Hadi Al Hussaini, UAE Minister of State for Finance, said the signing of the MoU is a testament to the UAE and Indonesia’s determination to develop bilateral relations and expand cooperation in various fields. He said he is confident that the MoU will significantly increase the efficiency of public financial management in both countries by promoting the exchange of experience and knowledge and leveraging international best practices in the financial sector. He added that the partnership is in line with the UAE’s vision to develop strategic relations globally, achieve shared prosperity and raise the level of economic and financial cooperation.
Strong bilateral and economic ties
The UAE and Indonesia share a strong and prosperous bilateral relationship, with trade expected to reach approximately $4 billion in 2023. The UAE’s exports to Indonesia are mainly petroleum products, petrochemicals, aluminium and electrical machinery, while its imports from Indonesia are mainly agricultural products such as coffee and tea, food, electronics and textiles. Economically, the two countries are linked through several important agreements, including the Double Taxation Avoidance Agreement (DTA), Bilateral Investment Treaty (BIT) and Comprehensive Economic Partnership Agreement (CEPA).
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UAE and Indonesia announce eight agreements across key sectors
Last week, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and His Excellency Joko Widodo, President of the Republic of Indonesia, witnessed the launch of eight memorandums of understanding and agreements aimed at further developing cooperation between the UAE and Indonesia. The two leaders met in Abu Dhabi, with President Widodo on a two-day state visit to the UAE, to review their strategic relationship within the framework of the two countries’ Comprehensive Economic Partnership Agreement (CEPA).
During the meeting, Sheikh Mohammed and President Joko Widodo witnessed the signing of eight agreements in key sectors between the UAE and Indonesia. These contracts included the installation of solar power systems on industrial and commercial rooftops in Indonesia. It also contained a memorandum on public budget management.
Another agreement was a memorandum of understanding between the UAE Central Bank and Bank Indonesia on smart systems, as well as a memorandum of understanding on cooperation in the peaceful uses of nuclear energy.
An additional agreement was a Memorandum of Understanding between the UAE Presidential Court and the Indonesian Ministry of Maritime Investment on the establishment of the Mohamed bin Zayed Joko Widodo Mangrove Research Centre in Bali, Indonesia. Another agreement was a Memorandum of Understanding between the Dubai International Financial Centre and the Nusantara Capital Authority (OIKN).
A memorandum of understanding was also signed between the Indonesian Ministry of State-Owned Enterprises and Eagle Hills Properties on cooperation in real estate development, tourism investment, and airport and hotel operations, as well as a framework agreement on maritime patrol aircraft.
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