Indonesia’s tourism industry is set for a major boost following a landmark agreement with the UAE. The Ministry of State-Owned Enterprises (SOEs) has partnered with UAE-based property developer Eagle Hills to invest $3 billion in enhancing the country’s tourism infrastructure.

The Memorandum of Understanding (MoU), signed during President Joko Widodo’s visit to the UAE, represents a strategic collaboration to elevate Indonesia’s hospitality sector. This initiative supports the country’s broader economic diversification goals and positioning itself as a leading global tourist destination.

The agreement outlines a multi-pronged approach to tourism development. A key focus will be improving existing infrastructure, with Jakarta’s Soekarno-Hatta International Airport slated for upgrades. 

The partnership will also expand the hospitality sector by developing new hotels throughout Indonesia. Investments will also be directed toward creating new tourist destinations, diversifying Indonesia’s tourism portfolio. 

Finally, the agreement includes joint ventures aimed at promoting knowledge transfer through collaborative studies, workshops, and training programs.

Minister of SOEs Erick Thohir emphasized that the agreement aligns with national economic goals and has the potential to drive sustainable growth across the archipelago.

Mohammed Alabbar, founder and chairman of Eagle Hills Properties, expressed his enthusiasm for the project. He highlighted the potential for the tourism sector to contribute even greater to Indonesia’s GDP and affirmed Eagle Hills’ commitment to supporting this endeavor.

The MoU provides flexibility in its execution, with a validity period of one year and the possibility of extension. This allows for an adaptable approach to the $3 billion investment.

This collaboration is part of the Ministry of SOEs’ broader strategy to leverage partnerships with global companies to boost productivity and economic impact. Indonesia has already seen successful collaborations in healthcare, clean energy, and electric vehicle (EV) ecosystems.

Now accepting applications for Fast Company Middle East’s Most Innovative Companies. Click here to apply.