Indonesia’s Ministry of State-Owned Enterprises (SOEs) signed a Memorandum of Understanding (MoU) with Eagle Hills, a property developer based in the United Arab Emirates (UAE) on 18 July 2024 to inject up to US$3 billion into Indonesia’s tourism sector and infrastructure.
The MoU, signed by Erick Thohir, the Minister of SOEs, and Mohammed Alabbar, founder and chairman of Eagle Hills Properties, outlines a comprehensive investment plan.
This includes developing tourism destinations, property projects, and airports; enhancing airport infrastructure and capacity; upgrading state-owned hotels to international standards; and conducting joint studies, workshops, and training programmes. A primary focus will be on improvements to Soekarno-Hatta International Airport in Jakarta.
"This landmark agreement represents a pivotal moment for Indonesia's tourism sector," said Thohir. "By partnering with Eagle Hills, we are setting the stage for unprecedented growth in our hospitality industry. This aligns with our national strategy to diversify our economy and position Indonesia as a premier global tourism destination."
Thohir also highlighted that the collaboration is expected to generate significant employment opportunities and drive sustainable economic growth throughout Indonesia.
Alabbar commented, "Indonesia has significant potential due to its resources and tourism destinations. We believe Indonesia can become more competitive and increase its tourism sector's contribution to GDP. Eagle Hills is eager to support this endeavour."
The MoU is set to be effective for one year, with the possibility of extension. The US$3 billion investment will be implemented flexibly over time.
This initiative is part of a broader effort by Indonesia’s Ministry of SOEs to enhance collaboration with international companies, aiming to maximise the value of Indonesian SOE assets and foster economic growth and job creation.