Adnoc signs energy deals as UAE agrees $23bn investment in Indonesia

Abu Dhabi National Oil Company signed a preliminary agreement with Indonesia’s Pertamina and Chandra Asri to explore the possibility of developing a crude-to-petrochemicals complex in the South East Asian nation in addition to potentially supplying naphtha, as the UAE agrees to invest $23 billion (Dh 83.68bn) in the country through a sovereign wealth fund being created by its President Joko Widodo.
The investment agreement by Adnoc is part of 11 business deals worth around 314.9 trillion Indonesian rupiah ($23bn), President Widodo announced on Twitter after he met Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces at the Qasr Al Watan Palace.

The UAE, the second-biggest Arab economy, plans to invest in Indonesia’s infrastructure and energy sectors, including projects such as the development of a new capital in Indonesia, Bloomberg reported citing a statement by the Indonesian cabinet secretariat on Monday. Japan’s SoftBank Group and the US International Development Finance Corporation are also eyeing taking part in the fund which is key in helping Indonesia meet its ambitious infrastructure programme, which requires more than $400bn of investment over the next five years.

The latest round of deals between the UAE and Indonesian firms follows $10bn to $15bn worth of agreements signed by companies such as Adnoc, Mubadala Investment Company and port operator DP World during a visit by Sheikh Mohamed to Jakarta last year.

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