Indonesia to sign $18bn energy and trade deals with UAE

South-east Asian country wants to attract foreign investors to help boost economic growth

                                

Indonesia is set to conclude $18.8bn (£14.3bn, €16.8bn) worth of energy and trade deals with the United Arab Emirates.

Around a dozen agreements will be completed during President Joko Widodo’s visit to Abu Dhabi, reports Reuters. Widodo is keen to attract more foreign investors to help create jobs and boost growth in south-east Asia’s largest economy.

The deals include the Indonesian state-owned oil and natural gas corporation, Pertamina, upgrading a refinery for the Abu Dhabi National Oil Co (ADNOC). Pertamina will also sign a deal to buy between 170,000 tons and 520,000 tons of liquefied petroleum gas from ADNOC.

The UAE state-owned Mubadala Investment Company is expected to invest in Pertamina’s expansion of its Balikpapan refinery in the East Kalimantan province of Indonesia.

Indonesia’s state power utility, Perusahaan Listrik Negara (PLN), is to sign an agreement with renewable energy firm Masdar. The two have jointly constructed a 145 megawatt floating photovoltaic power plant and PLN will pay 5.8 cents per kilowatt hour generated by the power plant for 25 years, once it becomes operational in 2022.

Indonesia’s state mining company Inalum and Emirates Global Aluminum will start a pilot project to increase Inalum’s production capacity.

These deals come on top of $9.7bn worth of agreements signed during Sheikh Mohammed’s visit to Indonesia last year.

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