Prabowo, UAE’s MBZ forge stronger strategic ties in Abu Dhabi

Jakarta’s defence minister Prabowo Subianto and Abu Dhabi’s Crown Prince Mohammed bin Zayed Al Nahyan (MBZ) concluded a landmark “Prabowo MBZ strategic partnership” on Thursday, signaling a new era for Indonesia‑UAE relations. The two leaders met on the sidelines of the Abu Dhabi diplomatic summit, where they signed memoranda covering defence cooperation, renewable‑energy projects, and a joint venture in maritime logistics. Observers say the accord could reshape the geopolitical balance in the strategic ties Middle East and open fresh avenues for trade, investment, and cultural exchange between the archipelago and the Gulf.

Background of Indonesia‑UAE Relations

Diplomatic ties between Indonesia and the United Arab Emirates date back to 1976, when both nations opened resident embassies in each other’s capitals. Over the past five decades, high‑level visits—most notably President Suharto’s 1990 trip to Abu Dhabi and President Joko Widodo’s 2018 state visit—have produced a series of cooperation agreements in trade, aviation, and education. The two economies have steadily deepened their partnership, with the UAE becoming Indonesia’s largest Arab market for oil‑derived products while Indonesia emerged as a key supplier of halal food and textiles to Gulf consumers.

Prabowo MBZ strategic partnership unveiled at Abu Dhabi diplomatic summit

The Prabowo MBZ strategic partnership was announced in a joint press conference that underscored the shared vision of both leaders for a resilient, diversified regional economy. Crown Prince MBZ highlighted his MBZ foreign policy focus on “strategic connectivity” that links Asia, Africa, and the Middle East through infrastructure and technology. Prabowo, on his part, framed the deal as a cornerstone of Indonesia’s “global South” outreach, aimed at reducing reliance on traditional Western partners.

Key components of the partnership include:

• Defence and security: A framework for joint naval patrols in the Indian Ocean, exchange programmes for military academies, and co‑development of unmanned aerial systems.
• Energy transition: A $1.5 billion fund to develop solar farms in Indonesia’s eastern provinces and wind turbines in the UAE’s Abu Dhabi and Dubai emirates.
• Maritime logistics: Creation of a “Silk‑Maritime Corridor” linking Jakarta, Dubai, and the Red Sea, facilitating faster cargo movement for perishable goods.
• Investment and trade: A pledge to double Indonesian exports of halal-certified products and UAE investments in Indonesia’s digital economy.
• People‑to‑people ties: Scholarships for Emirati students to study at Indonesian universities and a cultural festival rotating annually between Jakarta and Abu Dhabi.

Analysts note that the partnership aligns with broader trends in Indonesia UAE relations, where both capitals are seeking to diversify supply chains and reduce exposure to geopolitical shocks. The agreement also dovetails with the UAE’s ambition to become a hub for renewable‑energy innovation, while Indonesia aims to meet its own climate commitments under the Paris Agreement.

Economic dimensions

Indonesia’s trade with the UAE reached $7.2 billion in 2023, a figure that the two governments hope to more than double by 2028. The Prabowo MBZ strategic partnership is expected to unlock new sectors, especially in high‑tech manufacturing and digital services. UAE sovereign wealth funds have expressed interest in Indonesia’s burgeoning fintech scene, while Indonesian firms are eyeing opportunities in Emirati construction projects, particularly the upcoming “Marsa Al‑Arab” waterfront development.

Strategic and security implications

Both nations share concerns over maritime security in the Strait of Malacca and the Gulf of Aden, areas prone to piracy and illicit trafficking. The defence component of the partnership will see joint training exercises, intelligence sharing, and the establishment of a “Maritime Security Center of Excellence” in Jakarta. Such cooperation is viewed as a direct response to the rising influence of extra‑regional powers in the Indo‑Pacific and the strategic ties Middle East corridor.

Energy and climate cooperation

The renewable‑energy fund, co‑managed by Indonesia’s Ministry of Energy and the Abu Dhabi Investment Office, will prioritize projects that can be scaled across both territories. Early pilots include a 300‑MW solar park in West Java and a 250‑MW offshore wind farm off the coast of Abu Dhabi. Both sides anticipate that the initiative will generate up to 5 GW of clean power by 2035, contributing to the UAE’s Net‑Zero 2050 target and Indonesia’s 23 GW renewable‑energy goal.

People‑to‑people connections

Beyond economics and security, the partnership emphasizes cultural diplomacy. The new scholarship scheme will fund 500 Emirati students annually to pursue studies in Indonesian institutions, focusing on Islamic studies, marine biology, and renewable‑energy engineering. Conversely, Indonesia will host a series of “UAE Cultural Weeks” in major cities, showcasing Emirati art, cuisine, and technology.

Frequently Asked Questions

What is the core purpose of the Prabowo MBZ strategic partnership?

The partnership aims to deepen defence, economic, and cultural cooperation between Indonesia and the UAE, creating a framework for joint projects in energy, maritime logistics, and technology.

When and where was the agreement signed?

The memorandum was signed on 27 April 2024 during the Abu Dhabi diplomatic summit, attended by senior officials from both governments.

How does this deal affect existing Indonesia UAE relations?

It builds on decades of diplomatic engagement by introducing high‑value sectors such as renewable energy and digital finance, thereby expanding the scope of bilateral trade and investment.

What are the main sectors covered under the partnership?

Defence and security, renewable‑energy development, maritime logistics, trade and investment, and cultural/educational exchange.

Will the partnership influence regional geopolitics?

Yes. By strengthening ties in the strategic ties Middle East and Indo‑Pacific, both countries aim to present a united front on issues like maritime security, counter‑terrorism, and climate change.

How does the agreement align with MBZ foreign policy?

It reflects Crown Prince MBZ’s emphasis on diversifying partnerships beyond traditional allies, focusing on technology, sustainability, and strategic connectivity.

What are the expected economic outcomes?

Both sides project a rise in bilateral trade to $15 billion by 2029, with significant foreign‑direct investment flowing into Indonesia’s digital and renewable‑energy sectors.

Are there any immediate projects slated to start?

Yes. The first joint venture—a 300‑MW solar farm in West Java—is slated to break ground in Q3 2024, while the maritime corridor feasibility study will commence in Q4 2024.

The Prabowo MBZ strategic partnership marks a decisive step toward a more integrated Asia‑Middle East economic and security architecture. As both nations navigate a rapidly changing global order, the alliance could serve as a model for other emerging economies seeking diversified, resilient partnerships. Continued implementation of the agreed initiatives will be closely watched by regional observers and investors alike.

Source: Antara News