Top UAE Investment Sectors in Indonesia: Where to Invest

Top UAE Investment Opportunities in Indonesia: Sectors to Watch and Profit From

  • InCorp Editorial Team
  • 18 March 2025
  • 5 minutes reading time

Indonesia has become an attractive destination for UAE investment, offering significant opportunities for foreign investors, particularly from the country. This alliance, strengthened by the UAE-Indonesia Comprehensive Economic Partnership Agreement (CEPA), has unlocked a wealth of investment prospects across multiple sectors.  

But which industries should UAE investors focus on? What are the key benefits of investing in Indonesia, and how can investors navigate the business landscape efficiently? 

This article explores Indonesia’s top UAE investment opportunities, highlighting promising sectors, the advantages of investing in the country, and strategies to overcome potential challenges. 

Overview of the Partnership Between the UAE and Indonesia

Top UAE Investment Sectors in Indonesia: Where to Invest

The UAE and Indonesia have established a robust economic partnership, fostering a mutually beneficial environment for trade and investment. This alliance provides a strong foundation for UAE investors, instilling confidence in the investment climate.  

The UAE-Indonesia Comprehensive Economic Partnership Agreement (CEPA), which took effect on September 1, 2023, has significantly lowered trade barriers and facilitated smoother business transactions between the two countries. 

Key Sectors Strengthened By UAE-Indonesia Partnership 

The strategic alliance between these two nations has paved the way for massive investment inflows into key industries. Some of the primary sectors benefiting from this partnership include: 

  • Renewable Energy: UAE-backed solar farms and hydropower projects support Indonesia’s clean energy goals. 
  • Infrastructure: Investments in smart cities, roads, and ports contribute to modernization. 
  • Technology & Digital Economy: AI, fintech, and e-commerce sectors attract UAE capital. 
  • Agriculture & Food Security: Sustainable farming and food processing investments enhance supply chains. 
  • Reforestation & Sustainability: A $50 million UAE grant supports environmental conservation. 

Additional Investment Opportunities for UAE Investors 

Investors can explore additional investment opportunities in Indonesia besides the main sectors. The country’s pro-investment policies and economic diversification efforts create a favorable landscape for UAE businesses seeking to expand.  

  • Green Aluminum: A joint effort to lead in sustainable aluminum production. 
  • Tourism & SEZs: Eight designated economic zones focus on hospitality and creative industries. 
  • Food Estates: UAE investment in agriculture strengthens food security and reduces imports. 
  • Sports Infrastructure: Opportunities in stadiums, training centers, and sports facilities.
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Benefits of Investing in Indonesia 

The UAE-Indonesia Comprehensive Economic Partnership Agreement (CEPA) provides significant advantages for UAE businesses. This agreement strengthens economic ties, enhances market access, and creates a favorable investment climate. 

  • Preferential Market Access: Reduced tariffs on 90% of products, covering 94% of trade value. 
  • Fair Trade Environment: Transparent policies ensure equal opportunities for UAE businesses. 
  • Stronger Presence in Services: Easier market entry for finance, logistics, and tourism sectors. 
  • Fewer Trade Barriers: Simplified export regulations aligned with global standards. 
  • Government Procurement Access: 10% price preference in Indonesian tenders. 
  • Anti-Dumping Protection: UAE products are exempt from investigations when transshipped. 
  • Ongoing Policy Improvements: A Joint Committee ensures continued market access enhancements. 

While Indonesia presents significant investment opportunities, UAE investors must navigate regulatory, bureaucratic, and transparency challenges. Both governments actively work to remove these barriers and create a more investor-friendly environment. 

Regulatory and Bureaucratic Barriers 

Indonesia’s business registration, licensing, and tax regulations can be complex, leading to delays in investment processes. To address this, the Indonesian government has committed to streamlining bureaucracy and facilitating foreign investments, ensuring faster approvals and improved ease of doing business. 

Transparency and Policy Consistency 

Investors seek clear regulations and policy stability before committing to large-scale projects. UAE officials have emphasized the need for transparent negotiations and realistic project proposals to enhance investment security and predictability. 

Infrastructure and Institutional Challenges 

Investors require robust logistics, energy, and transportation networks to support large-scale projects. The UAE and Indonesia collaborate on infrastructure initiatives, including transportation, energy, and special economic zones (SEZs), to strengthen the investment climate. 

Competitive Investment Markets 

Indonesia competes with other emerging markets for foreign direct investment. To remain competitive, the Indonesian government is offering incentives such as tax breaks, investment protection, and priority access to government projects to attract UAE investors. 

Renewable Energy and Industrial Development 

Indonesia aims to position itself as a regional leader in renewable energy and industrial processing, requiring foreign expertise and investment. The UAE has recognized this potential and actively invests in renewable energy, industrial downstream, and large-scale housing projects, reinforcing bilateral economic ties. 

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Secure Your Investment in Indonesia with InCorp 

Indonesia’s pro-investment policies, growing market, and strong UAE ties make it an attractive destination for long-term investment. As both governments work to make it easier to do business and tackle regulatory issues, InCorp, a top business solutions provider, can help UAE investors understand Indonesia’s legal, regulatory, and operational requirements.  

This support strengthens Indonesia’s position as a key investment hub in Southeast Asia. Navigating legal, regulatory, and operational requirements is crucial for UAE investors looking to establish a presence in Indonesia. To simplify the process and ensure compliance, businesses can leverage: 

  • Investor KITAS: Provides foreign investors with legal residency and work permits to manage their businesses in Indonesia. 
  • Company Registration Services: Ensures proper business setup, regulatory compliance, and access to government incentives. 

By filling out the form below, you can explore your options now and gain a competitive edge in Indonesia’s booming market. 

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us.

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Frequent Asked Questions

As an investor, you are required to have a minimum investment of IDR 1 billion in invested shares to be eligible for an investor KITAS.

An Index 313 Investor KITAS will allow its holder to stay in Indonesia for a year, while an Index 314 Investor KITAS allows for a 2 year stay.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.