Indonesia has close ties with the United Arab Emirates (UAE). This is reflected in President Prabowo Subianto's frequent visits to the Gulf country. Since taking office last year, Prabowo has visited the United Arab Emirates three times.
There, Prabowo met PEA President Sheikh Mohamed bin Zayed Al Nahyan (MBZ), as well as marking Indonesia's commitment to strengthening bilateral relations between the two countries.
In geopolitics, the Gulf state is a strategic hub, serving as a gateway for trade through the Strait of Hormuz and market access to the Middle East, Africa, and Europe. On the other hand, Indonesia is a hub in Southeast Asia.
Through the Indonesia-United Arab Emirates Comprehensive Economic Partnership Agreement (IUAE CEPA), cooperation between the two countries covers various fields, such as energy investment, oil and gas, petrochemicals and ports, defense industry (cooperation with PT. PAL, PT. Pindad) as well as the development of halal products, and education.
With the IUAE-CEPA, Indonesia gets a gradual elimination, reduction, and lowering of import duty tariffs of around 94 percent of the UAE's total tariff posts since the agreement took effect. Based on data from the Ministry of Trade, the trade balance between Indonesia and the UAE continues to increase. In 2021 it was around US$ 1.9 billion and currently it has reached US$ 5 billion.
In January-August 2025, the total trade between the two countries reached US$ 3.83 billion, with Indonesia's exports to the UAE amounting to US$ 2.42 billion and Indonesia's imports from the UAE amounting to US$ 1.40 billion.
To find out more about the direction of cooperation between the two countries in the future, SUAR journalists Sutta Dharmasaputra, Tria Dianti, Agung Mahesa and video reporter Ahmad Afandi had the opportunity to talk with Indonesian Ambassador Extraordinary and Plenipotentiary (LBBP) to the UAE Judha Nugraha at the Ministry of Foreign Affairs Office on Tuesday, October 28, 2025.
Judha, who previously served as Director of Protection of Indonesian Citizens and Indonesian Legal Entities and was just inaugurated on August 25, 2025, said he would oversee the investment commitment from the UAE until it becomes a reality. His excerpt:
What did the President tell you when you were appointed Ambassador to the United Arab Emirates (UAE)?
Our task is to realize President Prabowo's Astacita through bilateral diplomacy between Indonesia and the United Arab Emirates (UAE) in various fields. Political, economic, socio-cultural, and also protection for Indonesian citizens. There are many things that can be developed between Indonesia and the UAE. These two countries are in a very strategic geopolitical position.
What is the Potential of Cooperation between Indonesia and United Arab Emirates (UAE)?
Indonesia is in Southeast Asia, between two continents, the UAE is also on the international trade route, almost about 30 percent of energy trade goes through the Strait of Hormuz, then 40 percent of international trade through the maritime route goes through the Strait of Malacca. These two countries can play the role of hubs for many regions.
For us, the UAE is not only a hub in a bilateral context, but also a hub for opening market access in the Middle East, Africa, and Europe. Because of this strategic position. Likewise, the UAE can utilize Indonesia to become a hub in the Southeast Asia region.
What makes Indonesia-UAE relations different from other countries?
From the number of visits of Mr. President alone, since he was inaugurated, you have visited the UAE three times. This already shows how close the relationship between the two countries is.
We understand that the Middle East is a region characterized by various kinds of conflicts and instability whose impact is felt throughout the world. For Indonesia, we need a safe and peaceful Middle East. So that we can grow together.
What cooperation currently exists between Indonesia and the UAE and how far has it progressed?
IKN is still under discussion. In addition, mainly for infrastructure, energy, including renewable energy, and also oil and gas. For example, the solar power plant in Cirata is a form of renewable energy investment made by the UAE in Indonesia. Then in the oil and gas sector, there is also cooperation for gas exploration in the Andaman Sea, in Aceh province by Mubadala Energy. Hopefully, it will be able to produce soon.
In the defense sector, we have various industries such as shipping, PT PAL has also built a kind of representative office in the UAE.
From education, there are also various kinds of investments made by the UAE, including with the University of Nahdlatul Ulama Yogyakarta (UNU Yogyakarta).
Any cooperation in the vocational field?
The UAE also requires labor from Indonesia. But we also have interests and are also needed by the UAE for skilled workers. Now in the context of skilled workers , the main key is expertise, skills that match what is needed by the UAE. Matchmaking.
Our migrant job placements are formal sector and also skilled workers. And this will certainly be very, very beneficial for both countries. As an illustration, almost 88 percent of the UAE's population are migrants.
For example, welding, hospitality, including the health sector. That is much needed in the UAE. We prepare them from the beginning here. Not only the skills, but also cultural knowledge, language, not only English, with Arabic as well, and also various other things.
Investment target to the United Arab Emirates?
Specifically, in the bilateral reading, the UAE is interested in funding large projects. About more than USD500 million. Of course our target is how to improve on the current achievements.
What about the IUEA - CEPA cooperation that has been in effect since more than a year ago?
We see that Indonesia-UAE relations are increasing, encouraging closer economic cooperation between the two countries. Now our hope is how the private sector can see the opportunities that can be done. Because the cooperation is very comprehensive.
Any response from the private sector?
In terms of statistics, there is an improvement. We have recorded a surplus. Around this time the total trade between the two countries reached USD5 billion. But the potential is still very large. What we need to develop together.
I am challenging the private sector. Don't just depend on the major trading destinations. Start exploring non-traditional markets. In investment terms, don't put all your eggs in one basket. Just like with our trading partners. Because the UAE is a hub for the Middle East, Africa, and also Europe.
What is the potential for Indonesian exports there?
Manufacturing, of course. And then, in terms of migrant workers, various kinds of hospitality sectors, and then health. Then also the creative economy sector that we can do.
In the next five years what do you expect to happen in the relationship between the two countries?
In the next five years, we certainly hope that the bilateral relations between the two countries will get closer. This is reflected in the intensified intensity of bilateral mechanisms between the two countries.
How we can increase trade, investment, including tourism as well, between the two countries. Including the example of investment. When it comes to investment, we have been given the task of not only pursuing investment commitments, but how to make them real.
Any special strategies you have prepared?
We identify where the check points of the investment realization are. Finding various other problems will create the perception that it is difficult to invest in Indonesia. We will try to focus on several key sectors. We escort, cooperate with related ministries and institutions.
Any specific targets during your three years there?
In the first year, of course, we will be networking. In the end, diplomacy is about networking. So when we have been able to build networking and create trust with the parties in the UAE to be able to continue to create closer economic interaction. We have to open up opportunities there. We open up our economy there. Don't just be happy playing at home.
Is there hope for investors in Indonesia?
The most important thing is whether the industry can provide profits. That's all that's left, the ease of investment. We must ensure that various kinds of licensing can be done easily. The one-stop service can actually run in the field. Then the land issue can be given clear legal certainty. And then also the labor issue. This is what we need to ensure. One of the things we are also developing is the special economic zones (KEK).
Well, the ease of doing business in us, we need to continue to improve the environment. The environment is from licensing, infrastructure, distribution, then legal certainty, and so on.
Do you have any tips for businesses to invest in the UAE or vice versa?
We at the Embassy of Abu Dhabi are an extension of all of you. Please take advantage of us. We are ready to help create a bilateral economic relationship that is increasingly beneficial for Indonesia and the UAE.
One, the first tip, do not hesitate to contact the embassy. Please, we are assigned by the state, paid by the state to help all of you to create bilateral economic relations that benefit both countries.
Secondly, network a lot in the UAE. Open up all kinds of opportunities. It will certainly look costly at the beginning to come to the UAE and open up various channels, but again be mindful that the potential is so great. So the most difficult thing is the first step. Everywhere, the first step is the hardest one.
