Property Giant From The UAE, Eagle Hills Ready To Invest IDR 48 Trillion In Indonesia

SOE Minister Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Indonesia has officially collaborated with property giant Eagle Hills, United Arab Emirates (UAE) to improve Indonesia's tourism and infrastructure ecosystem.

The value of inversion in this collaboration reached 3 billion US dollars or equivalent to Rp. 48.3 trillion (assuming an exchange rate of Rp. 16,100 per US dollar).

This collaboration was marked by the signing of a memorandum of understanding carried out by the Minister of SOEs, Erick Thohir and Chairman of Eagle Hills and Founder of Emaar, Mohamed Ali Rashed Alabbar at Eagle Hills in Dubai, UAE.

"Alhamdulillah, SOEs and Eagle Hills have agreed to cooperate with the investment value of up to 3 billion US dollars in Indonesia's tourism and infrastructure ecosystem," Erick said in an official statement, Wednesday, July 17.

He revealed that the important things from this collaboration include comprehensive investment in the development of hotel properties, airport areas, and tourism destination ecosystems.

Erick said, Eagle Hills is also committed to transferring knowledge through joint studies, workshops, and training programs.

Not only that, he continued, Eagle Hills is also ready to help develop airport infrastructure, renovate and develop state-owned hotels to lead to international standards as part of the development of new tourism destinations.

Erick is optimistic that this collaboration will not only increase economic contribution from tourism, but also create significant job opportunities and encourage equitable and sustainable economic growth in Indonesia.

This historic agreement represents a turning point for the Indonesian tourism sector. In collaboration with Eagle Hills, we are maintaining an unprecedented growth and development momentum in our tourism industry," said Erick.

This partnership, continued Erick, is in line with the national strategy to diversify the economy and make Indonesia a leading global tourism destination.

"This MoU is valid for one year, with the possibility of an extension through a mutual agreement. No timeframe has been set for an investment of US$3 billion and has provided flexibility in its implementation," said Erick.

Erick also said that this collaboration is part of a wider effort by the Ministry of SOEs to increase cooperation between SOEs and global companies to increase productivity and impact for Indonesia.

According to Erick, SOEs in various sectors have established important partnerships with global partners, including with Merck from the US for vaccines, Swire Hong Kong in the health sector, and with renewable energy company Masdar from the UAE.

"Some cooperation has also been carried out to help build an Indonesian electric vehicle (EV) ecosystem, such as with the Canadian mining giant Vale-Based-Metal for nickel," Erick said.

Meanwhile, Chairman of Eagle Hills and Founder of Emaar, Mohamed Ali Rashed Alabbar said Indonesia has great potential due to its tourism resources and destinations.

Alabbar assessed that this collaboration marks an important milestone for Indonesia's efforts to attract foreign investment and expertise to strengthen its tourism industry which has the potential to strengthen Indonesia's tourism ecosystem in the coming years.

"We believe Indonesia can become competitive and increase the contribution of the tourism sector to GDP. Eagle Hills wants to support this effort," said Alabbar.