Jakarta (Indonesia Window) – The United Arab Emirates (UAE) has announced that it will invest 10 billion U.S. dollars in Indonesia's sovereign wealth fund, or so-called Indonesia Investment Authority, WAM news agency reported.

The investment will focus on strategic sectors in the archipelagic country, including infrastructures, roads, ports, tourism, agriculture, and other promising sectors that have potential for growth and can contribute to growth as well as economic and social progress.

Indonesian President Joko Widodo last month announced the members of the Indonesia Investment Authority’s Board of Supervisors and Board of Directors, which was formed under the Omnibus Job Creation Law which was passed in October 2020.

The setting up of the board is considered a turning point in the governance and development of the investment system in Indonesia.

The Indonesian sovereign fund aims to implement strategic projects that support the national developments, including the construction of infrastructures and the new capital city in East Kalimantan province.

The UAE and Indonesia enjoy strong political, economic and cultural ties.

The official diplomatic relations between the two countries began in 1976, with the Indonesian embassy in Abu Dhabi opening on October 28, 1978.

Meanwhile, the UAE embassy in Jakarta was inaugurated in 1991, following a historic visit by the late Sheikh Zayed bin Sultan Al Nahyan to Indonesia in 1990.

Relations between the two countries also have witnessed tremendous growth in recent years with an increase in mutual visits at the level of top leadership and senior officials, most notably the visit by Indonesian President Joko Widodo in September 2015 to the UAE, and the visit by Sheikh Mohamed bin Zayed Al Nahyan to Indonesia in July 2019.

The two countries signed several agreements and cooperation deals.

The two sides recently concluded the UAE-Indonesia Week 2021, as several cooperation agreements were signed relating to ports, logistics, strategic and defense industries, energy, tourism, the creative economy and mangrove farms.

In terms of trade and economic ties, there was remarkable growth, with the volume of trade exchange reaching about 3.7 billion U.S. dollars.

Reporting by Indonesia Window