Indonesian Industry Minister, Airlangga Hartarto, and UAE Energy and Industry Minister, Sulhail Mohamed Faraj Al Mazrouei, signed a Memorandum of Understanding (MOU) on the cooperation agreement at the Bogor Presidential Palace in West Java.
"The MOU will serve as an umbrella for cooperation in the development of industrial sector potential for the two countries," Hartarto said in a statement here on Thursday.
The two governments will develop the agro-based industry, metal and machinery industry, chemical industry and the small and medium scale industry, among others.
Among Indonesia's 10 potential commodity exports to the UAE are crude palm oil, food and beverages, pulp and paper.
Indonesia has the potential to export agro-industrial products, particularly pulp and paper, as the Al-Nakheel tissue factory operates in Abu Dhabi.
A possibility to export more metal and machinery is also open as the UAE has its first and largest automotive industry built by Ashok Leyland in Ras Al Khaimah.
"They even have the industrial service sector, especially aircraft maintenance, namely the Advanced Military Maintenance, Repair and Overhaul Center," he said.
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The UAE has the third-largest petrochemical industry after Saudi Arabia and Qatar in the Middle East.
Artificial intelligence, export financing for industry, halal product certification and standardization, vocational education and training programs are also areas for the two nations to develop under the bilateral cooperation agreements.
The total investment made by the UAE in Indonesia over the last three years reached US$172 million across 234 projects.
In 2018, the UAE's investment in Indonesia increased significantly, particularly in the manufacturing sector, including the chemical and pharmaceutical industries.
During the visit of the Abu Dhabi Crown Prince, Sheikh Mohamed Bin Zayed Al Nahyan, to Indonesia, the Arab nation voiced its commitment to increase its investment in Indonesia.
Three agreements over investments worth $9 billion were signed in the presence of the Crown Prince and Indonesian President, Joko Widodo (Jokowi), on Wednesday.
The agreements were on a Refinery Development Master Plan (RMDP) in Balikpapan, East Kalimantan, the petrochemical industry development of Chandra Asri Perkasa (CAP 2), and the expansion of an international container port located in the Maspion 5 industrial zone in Manyar-Gresik, East java Province.
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