Visit of Widodo: Dimensions of the Strategic Relationship Development Between the UAE and Indonesia
Indonesian President Joko Widodo concluded his visit to the United Arab Emirates on July 17, 2024, which lasted two days. He was received by His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, at Qasr Al Watan in Abu Dhabi. During the visit, Widodo was awarded the “Zayed Medal” in recognition of his efforts to strengthen the close relationship between the two countries. Both leaders emphasized the importance of continuing to work towards broadening the bilateral relations to achieve the common goals of both nations. The relationship between Jakarta and Abu Dhabi serves as a model of political harmony and constructive economic cooperation. The presidents agreed to continue their coordination and communication to strengthen joint cooperation in various fields and to address current geopolitical challenges in the Middle East and Southeast Asia, thus serving their strategic interests.
Significant Outcomes
Diplomatic relations between Indonesia and the UAE date back to 1976, with the Indonesian embassy opening in Abu Dhabi in October 1978 and the consulate general in February 2003. President Joko Widodo has visited Abu Dhabi seven times since assuming office in 2014, including four times in the past two years since Sheikh Mohamed bin Zayed Al Nahyan took office on May 14, 2022. This reflects the political leadership’s commitment in both countries to maintain intensive coordination and communication. Widodo’s recent visit to Abu Dhabi included several key events, most notably:
Commendation for Developing Bilateral Relations Over the Past Decade: His Highness Sheikh Mohamed bin Zayed Al Nahyan praised President Widodo’s role in developing relations between the two countries over the past decade and his personal interest in advancing these relations. The non-oil trade volume between the UAE and Indonesia increased from $2.7 billion to $4.4 billion during this period. Cultural symbols reflecting the strong friendship between the two nations include the Sheikh Zayed Grand Mosque in Solo, Indonesia, and Joko Widodo Street and Mosque in Abu Dhabi. Widodo expressed his desire to continue constructive cooperation with Sheikh Mohamed bin Zayed in various fields, including renewable energy, environment and climate change, trade, and investment.
Emphasis on Implementing the Comprehensive Economic Partnership Agreement: The UAE and Indonesia signed the Comprehensive Economic Partnership Agreement in July 2022, which came into effect in September 2023. Sheikh Mohamed bin Zayed described it as a “qualitative turning point” that expanded economic cooperation and served joint development. Widodo noted that the UAE is the only Middle Eastern country with which Jakarta has such an agreement. Both presidents stressed the importance of implementing all provisions of the agreement to achieve its goals, including increasing their trade volume from $3 billion annually in 2021 to $10 billion within five years, removing tariffs on most goods and services, and increasing the total value of bilateral service trade to $630 million by the end of 2030. This agreement is significant for both nations, especially Abu Dhabi, as it enhances economic cooperation with the largest economy in ASEAN, opening a vast market with a large number of consumers.
Signing Agreements to Enhance Cooperation in Various Fields: The UAE and Indonesia signed several agreements and memorandums of understanding in various fields to open new avenues for cooperation. These include a framework agreement on maritime patrol aircraft, memorandums of understanding on public budget management, cooperation between the UAE and Indonesian central banks on smart systems, establishing the Sheikh Mohamed bin Zayed and Joko Widodo Mangrove Research Center in Indonesia, cooperation between Dubai International Financial Center and Nusantara Financial Authority, real estate development, tourism investment, and airport and hotel management. The UAE Central Bank announced in May the use of local currencies in bilateral transactions with Indonesia to enhance trade between the two nations.
Strengthening Cooperation in the Energy Sector: The visit saw the signing of an agreement to install solar energy systems in Indonesia and a memorandum of cooperation in peaceful nuclear energy, boosting cooperation in renewable energy. The visit followed announcements of significant natural gas discoveries by UAE companies in Indonesia, including a large gas find by Mubadala Energy in the exploratory well “Tangkul-1” near Sumatra and the discovery of the “Layaran-1” natural gas well south of Andaman in Indonesia.
Expanding Cooperation on Climate Change: Abu Dhabi announced the establishment of the Mohamed bin Zayed – Joko Widodo Mangrove Research Center during the visit, with a $10 million contribution to global mangrove conservation efforts. Mangroves are vital natural solutions for combating climate change and protecting coastal ecosystems. The center symbolizes the strategic partnership between Abu Dhabi and Jakarta in various fields.
Common Interests
President Widodo’s visit to Abu Dhabi underscores both nations’ desire to strengthen cooperation in various fields. The visit highlights several important implications:
Institutionalizing Joint Cooperation: Widodo’s visit comes after several events that have added momentum to strategic cooperation between the two countries. In November 2023, the new Indonesian embassy in Abu Dhabi was inaugurated, followed by the first session of the joint committee in Abu Dhabi. In May 2024, the leading advanced technology and defense company, EDGE Group, signed a $27 million agreement with Indonesia’s PT Pindad to provide an ammunition production line, with production starting in 2026. Widodo’s visit further institutionalizes cooperation beyond political leadership, ensuring continued strategic cooperation even after his term ends later this year.
Expanding Coordination on Regional and International Issues: The visit highlights the political weight of both nations, with each being a significant regional player. Their continued cooperation positively impacts the Middle East and Southeast Asia. Jakarta supports the UAE’s accession to ASEAN as a dialogue partner, while the UAE serves as an important gateway for Indonesia to the Gulf states. This aligns with Abu Dhabi’s strategy of diversifying its alliances and partnerships, enhancing its foreign policy strength. The two nations agree on several international issues, including the need to end the Gaza conflict, a negotiated solution to the Ukraine war, global nuclear disarmament, and adherence to international law and United Nations principles. They also continue to coordinate in various regional and international forums, including the United Nations, the Organization of Islamic Cooperation, the CICA Dialogue, and the Shanghai Cooperation Organization, enhancing their regional influence.
Promoting Moderate Islam: Indonesia, the largest Muslim country in Southeast Asia, follows a moderate Islamic approach. The UAE represents a unique model as an Islamic country that embraces religious pluralism, promoting moderation and the humane face of Islam. Both countries are committed to spreading the principles of moderate Islam to combat extremist ideologies, especially with the resurgence of terrorist activities in the Middle East by groups such as ISIS, Al-Qaeda, and ISIS-Khorasan in Afghanistan, which have extensions in Indonesia and Southeast Asia. This requires security, intelligence, and cultural cooperation.
Promoting Tolerance and Coexistence: The UAE and Indonesia exemplify the adoption of tolerance concepts. The UAE hosts people of various nationalities, ethnicities, and religions, working harmoniously to achieve economic development. Indonesia’s population speaks over 700 languages and represents various Asian ethnicities. Both nations serve as models for promoting tolerance and acceptance, having issued a joint statement in 2015 emphasizing the importance of “promoting tolerance to achieve peace, security, and stability in the world and encouraging interfaith dialogue among different peoples.”
Implementing the UAE’s “50 Principles”: The UAE announced the “50 Principles” (2021-2071) in 2021, outlining the country’s vision for its role over the next five decades. The strategy includes ten principles, one of which states that “foreign policy is a tool to serve national objectives, primarily economic interests, and to strengthen the UAE’s global reputation as an economic, tourist, industrial, and cultural destination.” Enhancing political and economic cooperation with Indonesia aligns with this strategy, opening avenues for cooperation between Abu Dhabi and Southeast Asian countries and ASEAN, to which Indonesia belongs. Both nations strive to establish regional and global peace and stability, relying on dialogue and negotiation to resolve international disputes, embodying the essence of the UAE’s foreign policy.
In conclusion, President Widodo’s visit to the UAE was significant, enhancing future cooperation prospects between the two nations. It underscores Abu Dhabi’s commitment to diversifying its strategic partnerships in line with its vision for the next five decades, boosting its regional standing. Abu Dhabi can act as a bridge between ASEAN and the Gulf Cooperation Council, fostering political harmony and economic cooperation, benefiting all parties and addressing current regional and international issues.
