Unpacking the UAE and Indonesia's special relationship

President Sheikh Mohamed receives Joko Widodo, President of Indonesia, at the Presidential Airport on Tuesday. Photo: Hamad Al Kaabi / UAE Presidential Court ( Hamad Al Kaabi / UAE Presidential CourtShow more

In November 2022, when President Sheikh Mohamed and Indonesian President Joko Widodo attended the inauguration of the Sheikh Zayed Grand Mosque in Solo, Indonesia, it symbolised the depth of the relationship between two countries that may be far apart geographically but have much in common.

Named after the late Sheikh Zayed bin Sultan Al Nahyan, the mosque – a smaller replica of the one in Abu Dhabi – represented the UAE Founding Father’s “values of peace and goodwill, reflecting the long-standing ties that exist between our two countries,” Sheikh Mohamed tweeted at the time. Those ties will be renewed with this week’s two-day state visit to the Emirates by Mr Widodo.

It comes at a time of transition for Indonesia. In October, Mr Widodo will hand over power to the winner of February’s presidential election, Prabowo Subianto. Despite this important change, a look at the relationship between the UAE and Indonesia reveals a string of connections – human, cultural, political and economic – that will endure.

From the time the UAE was founded in 1971, Indonesia was quick to recognise the new nation. Since then, the two states have built a notable relationship that is founded on key points of convergence. Both are Muslim-majority nations; Indonesia, with more than 270 million people living on more than 17,500 islands, remains the world’s most populous Muslim-majority country. Both believe in a rules-based order with diverse alliances, retaining an independent voice and outlook on the global stage. Both are strong supporters of the Palestinians’ right to statehood, and both have also taken a strong position against extremism, with Indonesia having felt the pain of militant attacks on its territory.

Both are also convinced of the political good that comes from responsible diplomacy and pursuing prosperity. Two years ago, the UAE and Indonesia signed a Comprehensive Economic Partnership Agreement that was aimed at increasing bilateral trade to $10 billion within five years. Since then, Indonesia, the largest economy in South-East Asia, has significantly increased its trade value with the Emirates. A decade ago, non-oil trade was much lower, but has since risen to $4 billion.

This journey has been mutually beneficial. Writing in The National in October 2022, Arsjad Rasjid, chairman of the Indonesian Chamber of Commerce and Industry, described how Sheikh Mohamed and the UAE were “no strangers to the commercial viability of infrastructure projects in Indonesia”, adding that investment from companies such as DP World, Abu Dhabi Investment Authority and Mubadala were vital to the country’s future development. Finance and investment have flowed in the other direction too, with state news agency Wam reporting in May that Indonesian investments in Dubai reached Dh188 million ($51 million) last year, accounting for nearly 90 per cent of total Indonesian investments into the emirate over the past five years.

Speaking to The National just before his visit to the Emirates, Mr Widodo outlined his views on trade and diplomacy. “Competition and rivalry are normal,” he said. “What is important is that it must be managed properly to prevent open conflicts, because war and conflicts harm everyone.” It is an outlook shared by the UAE, which has consistently pursued a similarly constructive and pragmatic approach.

The similarities between the UAE and Indonesia can also be seen in their domestic affairs. Like the Emirates, Indonesia has invested significant amounts of time and resources into vital megaprojects, future-proofing its infrastructure to mitigate effects of climate change, developing tourism and working to ensure food security. Indonesia, like the Emirates, is outward looking and open to the world but remains acutely aware of the value of its religious and cultural heritage.

Such a high level of commonality is usually rare for countries in different regions, but the human connection between Indonesia and the UAE compliments the two countries’ shared economic and diplomatic outlook. Thousands of Indonesians live and work in the UAE, adding to the rich cosmopolitan culture that exists in the Emirates.

However, the international scene remains a volatile one and challenges will continue on the global stage– great power rivalry, extremism, climate change and economic uncertainty, to name but a few. Amid such a global outlook, finding like-minded allies is a necessity, not a luxury. The UAE and Indonesia are bound, therefore, to collaborate with one another.