UAE, Indonesia leaders discuss ways to boost ties
President His Highness Sheikh Mohamed Bin Zayed Al Nahyan on Monday received Prabowo Subianto, Minister of Defence of the Republic of Indonesia and the President-elect, at Qasr Al Shati in Abu Dhabi.
During the meeting, Subianto conveyed the greetings of President Joko Widodo of Indonesia, along with his wishes for the continued progress and prosperity of the UAE.
In return, Sheikh Mohamed extended his best wishes for further prosperity and development to President Widodo and the friendly people of Indonesia.
Sheikh Mohamed extended his congratulations once more to Prabowo Subianto on his recent victory in the Indonesian presidential elections.
Sheikh Mohamed expressed his best wishes for Subianto’s success in guiding his nation through the forthcoming period and in meeting the aspirations of his people. Furthermore, Sheikh Mohamed emphasised his keen interest in leveraging the robust strategic ties between the UAE and Indonesia to deepen cooperation and foster shared development and prosperity.
During their meeting, Sheikh Mohamed and the Indonesian Defence Minister discussed bilateral relations, particularly in defence and military affairs, and ways to enhance them for the benefit of both nations. They also exchanged views on a number of regional and international issues of mutual interest.
Sheikh Mohamed awarded Prabowo Subianto the Order of Zayed during the meeting in recognition of his sincere efforts and his role in enhancing cooperation between the UAE and Indonesia.
In response, the Indonesian Defence Minister expressed his appreciation to Sheikh Mohamed, as well as his pride in receiving this medal named after the late Sheikh Zayed Bin Sultan Al Nahyan, a revered global humanitarian figure.
He also expressed his hope for continued development and growth in the relations between the two countries to fulfil their mutual aspirations.
A couple of days ago, Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Perry Warjiyo, Governor of Bank Indonesia, signed a Memorandum of Understanding supporting the steady growth of trade relations between the two countries through the establishment of a framework that promotes the use of local currencies for bilateral transactions.
The partnership between the UAE and Indonesia witnessed a remarkable growth in non-oil trade, doubling between 2017 and 2023 to reach more than Dhs16 billion.
The MOU defines a framework comprising various elements and measures to facilitate the settlement of cross-border trade transactions in the two national currencies (the UAE Dirham and the Indonesian Rupiah) as agreed between importers and exporters. It also outlines the types of eligible transactions and allows for developing the conditions to support hedging and liquidity management activities in AED-IDR.
This collaboration marks a key milestone in strengtheningbilateralfinancialcooperationandwill helpbusinessesreducetransactionprocessingcosts.
Under this agreement, the Central Bank of the UAE and Bank Indonesia will collaborate on promoting the use of their national currencies by supporting the gradual implementation of the framework, which also aims to develop financial markets to support economic growth and financial stability.
Commenting on the MOU, Khaled Mohamed Balama, Governor of the Central Bank of the UAE, said, “This agreement constitutes a strong basis for strengthening future partnerships between both parties, laying the ground for more business opportunities in the banking and financial sector and supporting trade and investment growth.”
Perry Warjiyo, Governor of Bank Indonesia, said, “We are pleased to embark on another cooperation to deepen financial integration and strengthen the economic relations of the UAE with Indonesia. Local currency transactions would further support financial stability and resilience, and deepen the financial market to address heightened external vulnerabilities.”
Indonesian investments in Dubai reached AED188 million (US$51 million) in 2023, accounting for about 87% of total Indonesian investments into the emirate over the past five years.
Recently, during a visit by a Dubai Chamber delegation to the Indonesian capital, Jakarta, Mohammad Ali bin Rashed Lootah, President & CEO of Dubai Chambers, stated to WAM that Indonesian investments have reached $58.7 million over five years (2019-2023).
Sheikh Mohamed, Prabowo Subianto discuss bilateral relations, particularly in defence and military affairs, and ways to enhance them; UAE President bestows Order of Zayed on Indonesian defence minister.