The Indonesian Ministry of State-Owned Enterprises (BUMN) has formed a historic partnership with Eagle Hills from the United Arab Emirates (UAE) to enhance Indonesia’s tourism ecosystem and infrastructure. The investment is valued at USD 3 billion (approximately IDR 48.35 trillion, assuming an exchange rate of IDR 16,117 per USD). The partnership was marked by the signing of a memorandum of understanding by Minister Erick Thohir and Eagle Hills Chairman Mohamed Ali Rashed Alabbar in Dubai on Tuesday, 16 July. Minister Erick Thohir highlighted that the collaboration involves comprehensive investments in hotel properties, airport areas, and tourism destinations. Eagle Hills also committed to knowledge transfer through joint studies, workshops, and training programs. Additionally, the company will assist in developing airport infrastructure and renovating state-owned hotels to meet international standards as part of new tourism destination developments. "This historic agreement represents a turning point for Indonesia's tourism sector. With this partnership, we are maintaining unprecedented growth and development momentum," said Erick. He emphasized that this partnership aligns with Indonesia's national strategy to diversify its economy and establish itself as a leading global tourism destination. Erick believes the collaboration will significantly boost economic contributions from tourism, create substantial job opportunities, and drive equitable and sustainable economic growth in Indonesia.
The MoU is effective for one year, with the possibility of extension through mutual agreement. There is no fixed timeframe for the USD 3 billion investment, allowing flexibility in its implementation. Erick added that this partnership is part of a broader effort by the Ministry of BUMN to enhance collaboration between state-owned enterprises and global companies to increase productivity and impact in Indonesia. Currently, BUMN has key partnerships with global entities, including Merck from the US for vaccines, Swire from Hong Kong in the healthcare sector, and Masdar from the UAE in renewable energy. Additional collaborations aim to develop Indonesia's electric vehicle ecosystem, such as with Canadian mining giant Vale-Based-Metal for nickel. Alabbar acknowledged Indonesia’s vast potential due to its resources and tourist destinations. "We believe Indonesia can become competitive and increase tourism's contribution to GDP. Eagle Hills wants to support these efforts," said Alabbar.
