Indonesia's Ministry of State-Owned Enterprises (SOEs) has entered into a significant agreement with Eagle Hills a United Arab Emirates (UAE)-based property developer, to boost the country's tourism sectors and infrastructure. The Memorandum of Understanding (MoU), signed on July 18, 2024, outlines plans for investments of up to $3 billion in Indonesia's tourism ecosystem.
The partnership, signed by Erick Thohir, minister of SOEs, and Mohammed Alabbar, founder and chairman of Eagle Hills Properties, aims to invest in tourism destinations, property development and airports; develop new tourism "ecosystems;” enhance airport infrastructure and capacity; upgrade state-owned hotels to international standards; and transfer knowledge through joint studies, workshops and training programs. A key focus will be on improving Soekarno-Hatta International Airport in Jakarta.
"This landmark agreement represents a pivotal moment for Indonesia's tourism sector,” Thohir said. “By joining forces with Eagle Hills, we are setting the stage for unprecedented growth and development in our hospitality industry. This partnership aligns perfectly with our national strategy to diversify our economy and establish Indonesia as a premier global tourism destination."
Thohir added that the collaboration is expected to create significant employment opportunities and drive sustainable economic growth across Indonesia.
"Indonesia has significant potential due to its resources and tourism destinations,” Alabbar said. “[We believe] Indonesia can be competitive and increase its proportion of the tourism sector's contribution to the GDP [gross domestic product] — Eagle Hills would like to support this endeavor."
The MoU will be effective for one year, with the possibility of extension. There is no fixed timeframe for the $3 billion investment, allowing for flexibility in its implementation.
This agreement is part of a broader initiative by Indonesia's Ministry of SOEs to increase collaboration with global companies, aimed at generating more value from Indonesian SOE assets and maximizing economic growth and job creation across the country.
Editor’s Note: This article was generated by AI, based on a press release distributed by the Ministry of State-Owned Enterprises. It has been fact-checked and reviewed by a TravelAge West editor.
