Government Affirms UAE as Indonesia's Leading Middle East Trading Partner

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November 28, 2025 | 10:49 am

TEMPO.CO, JakartaIndonesian Coordinating Minister for the Economy, Airlangga Hartarto, representing President Prabowo Subianto and Vice President Gibran Rakabuming Raka, attended the 54th National Day of the United Arab Emirates (UAE) in Kuningan, South Jakarta, on Thursday, November 27, 2025.

In his remarks, Airlangga emphasized the close relationship between the two countries, which has existed for nearly five decades. "This year also marks the 49th year of diplomatic relations between Indonesia and the UAE, and since its establishment in 1976, we have enjoyed a friendly and strong relationship," he said. He reminded that Indonesia was one of the first countries to recognize the UAE's declaration of independence on December 2, 1971.

Main Trade Partner in the Middle East

Airlangga then highlighted the UAE's position as Indonesia's main trade and investment partner in the Middle East region. "The UAE remains our main trade and investment partner in the Middle East region. Our bilateral trade has reached US$4.5 billion, a 20 percent increase from last year," he said. According to him, the UAE is also one of the largest markets for Indonesian palm oil.

He added that the cooperation between the two countries plays a significant role in supporting national development. One of the strategic projects is the development of renewable energy through Masdar's partnership with PLN (state-owned electric company) on the Cirata Reservoir floating solar power plant project in West Java. The project began operating on November 9, 2023. Airlangga stated that the Indonesian government is currently considering expanding the project.

Airlangga also mentioned the implementation of the Indonesia-UAE Comprehensive Economic Partnership Agreement (CEPA), which has been in effect since September 1, 2023. By 2030, this cooperation is projected to increase exports by up to US$4.2 billion.

Towards 50 Years of Diplomatic Relations

Leading up to the 50th anniversary of diplomatic relations in 2026, Airlangga emphasized the importance of both countries preparing projects to be inaugurated together. He also affirmed the importance of cooperation in promoting tolerance and combating radicalism and extremism. Additionally, he emphasized the UAE's role as a dialogue partner for ASEAN sectors and its contributions to addressing climate change and clean energy issues.

UAE Ambassador to Indonesia Abdulla Salem Al Dhaheri, in the same event, expressed appreciation for the strategic relationship between the two countries. "This relationship continues to rapidly develop in various fields: politics, economy, trade, and development," he said.

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