The UAE has signed a Memorandum of Understanding (MoU) with Indonesia to enhance cooperation in public financial management.
The agreement covers a range of financial practices, including macroeconomic and fiscal policy, debt management, and climate finance. The MoU aims to facilitate the exchange of knowledge through study visits, training programs, workshops, and seminars. Additionally, a joint council will be established under this agreement to ensure its effective implementation and to monitor ongoing cooperation between the two nations.
Global strategic partnerships, shared prosperity
Mohamed Hadi Al Hussaini, UAE’s minister of State for Financial Affairs, said that the signing of this MoU is a testament to the commitment of the UAE and Indonesia to develop bilateral relations and expand cooperation across various fields. He expressed confidence that the MoU will significantly enhance the efficiency of public financial management in both countries by facilitating the exchange of experiences and knowledge, and by leveraging international best practices in the financial sector. The minister added that this partnership aligns with the UAE’s vision to develop strategic relations globally, achieve shared prosperity, and elevate the level of economic and financial cooperation.
Robust bilateral relations and economic ties
The UAE and Indonesia share robust and flourishing bilateral relations, with trade volumes reaching approximately $4 billion in 2023. The UAE’s exports to Indonesia predominantly consist of petroleum products, petrochemicals, aluminum, and electrical machinery, while imports from Indonesia mainly include agricultural commodities like coffee and tea, alongside food products, electronics, and textiles. Economically, the two nations are connected through several pivotal agreements, including the Double Taxation Avoidance Agreement (DTA), the Bilateral Investment Treaty (BIT), and the Comprehensive Economic Partnership Agreement (CEPA).
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UAE, Indonesia announce eight agreements in key sectors
Last week, UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and Joko Widodo, President of the Republic of Indonesia, witnessed the announcement of eight MoUs and agreements aimed at further developing cooperation between the UAE and Indonesia. The two leaders, with President Widodo on a two-day state visit to the UAE, met in Abu Dhabi to review the strategic relations within the framework of the two countries’ Comprehensive Economic Partnership Agreement (CEPA).
During the meeting, Sheikh Mohamed and President Widodo witnessed the signing of eight agreements in key sectors between the UAE and Indonesia. These agreements included an agreement to install solar energy systems on industrial and commercial rooftops in Indonesia. They also included an MoU on public budget management.
Another agreement was an MoU between the Central Bank of the UAE and the Central Bank of Indonesia regarding smart systems. There was also an MoU on cooperation in the peaceful use of nuclear energy.
An additional agreement was an MoU between the UAE Presidential Court and the Indonesian Ministry of Maritime Affairs and Investment on the establishment of the Mohamed bin Zayed-Joko Widodo Mangrove Research Center in Bali, Indonesia. Another agreement was an MoU between Dubai International Financial Center and the Nusantara Capital Authority (OIKN).
There was also an MoU between Indonesia’s Ministry of State-Owned Enterprises and Eagle Hills Properties on cooperation in real estate development, tourism investment, and the management of airports and hotels. Moreover, there was a framework agreement on maritime patrol aircraft.
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