Indonesia hails ‘historic’ $22.9bn mega-investment deal with UAE

The UAE has pledged to build a replica of Abu Dhabi’s Sheikh Zayed grand mosque in Solo, the hometown of Indonesian leader Joko Widodo. (Shutterstock)
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Updated 17 January 2020

Indonesia hails ‘historic’ $22.9bn mega-investment deal with UAE

  • Leaders agree initial $6.8bn projects plan, including initiative to build a replica of Abu Dhabi grand mosque in Java

JAKARTA: Indonesia’s business community on Thursday welcomed the UAE’s pledge to pump tens of billions of dollars into a wide range of key sector projects.

President Joko Widodo and his entourage secured an overall $22.9 billion deal during an official two-day visit to Abu Dhabi earlier this week covering the fields of energy, logistics, port construction, mining, and agriculture.

It was also revealed that the delegation brokered a UAE commitment to assist in establishing an Indonesian sovereign wealth fund.

At a bilateral meeting, the Indonesian leader and the Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al-Nahyan witnessed the signing of 11 business accords between the two countries. Indonesia’s Minister for Foreign Affairs Retno Marsudi said the UAE had committed to investing $6.8 billion out of the total agreed spending package into the initiatives.

Luhut Pandjaitan, Indonesia’s chief minister for maritime affairs and investment, described the UAE’s pledges as possibly being “the biggest deals in Indonesia’s history, secured with the UAE within only six months,” referring to the crown prince’s visit to Indonesia last July.

While most lauded the deal, some Indonesian business leaders remained cautious over the long-term prospects for the projects.

Fachry Thaib, head of the Middle East Committee and OIC at the Indonesian Chamber of Commerce, said the schemes could trigger a wide-ranging domino effect through job creation and other business ventures.

“The government needs to have a strong lobbying team that can follow up these deals and push them into investment realizations. We have had such commitments from other Gulf countries, but there was no further lobbying and the pledges were hardly realized,” he told Arab News.

Zaini Alawi, a businessman who exports and imports between Indonesia and the Middle East, said: “It would set a good precedent to attract other Gulf countries to invest here if Indonesia shows it could aptly manage these investment deals.”

Director for Middle East affairs at Indonesia’s Foreign Ministry, Achmad Rizal Purnama, told Arab News that the $6.8 billion commitment from the UAE was only the first phase of a long-term program.

Widodo and the crown prince also witnessed the signing of five government cooperation agreements in health, agriculture, Islamic affairs, and counterterrorism.

Indonesian Minister of Religious Affairs Fachrul Razi said one of the main aspects of the cooperation agreement would be the promotion of religious moderation and raising awareness of the dangers of extremism.

FASTFACT

The UAE has pledged to assist in establishing an Indonesian sovereign wealth fund.

Noting that the UAE had pledged to fund the construction of a replica of the Abu Dhabi grand mosque in Solo, the president’s hometown in Java, the minister pointed out that the grant was part of a commitment by the two countries to establish a mosque that welcomed all people and served a pivotal role in promoting the middle path of Islam.

Riza Widyarsa, a Middle East expert at the University of Indonesia, told Arab News that the cooperation deal could help more Indonesians to understand that not all countries in the Middle East observed conservative Islam. “They are also very active in countering religious extremism and radicalism,” he said.

In addition to the multi-billion-dollar projects, Purnama said Indonesia had also secured the UAE’s commitment to assist in establishing an Indonesian sovereign wealth fund into which the UAE, the US International Development Finance Corporation, and Japan’s SoftBank would inject funding.

And according to Pandjaitan, the UAE had pledged to be “the biggest contributor” to the fund.

The fund would be used to finance Indonesia’s ambitious infrastructure development projects and the construction of its proposed new capital in East Kalimantan, a relocation that has been estimated to cost $33 billion and of which Indonesia could only afford 19 percent.

He said all parties involved would meet in Tokyo soon to set up the structure of the fund and to finalize the plan, which the government expected to launch by mid-2020, a year after the crown prince proposed the idea to Widodo.

“This could be the first time that big capitalists work together in a single project,” Pandjaitan added.


Finnish-style play-based learning to provide alternative to Gulf's hothouse education scene

Updated 15 min 54 sec ago

Finnish-style play-based learning to provide alternative to Gulf's hothouse education scene

  • The Finnish approach to education is grounded in the idea of providing schools with autonomy and support and giving teachers freedom
  • Finland has a national pre-primary curriculum that is focused on holistic, play-based learning and skills development

DUBAI: Finland’s school operators are capitalizing on the country’s reputation for educational excellence by establishing a foothold in the Middle East.
The Finnish approach to education is grounded in the idea of providing schools with autonomy and support and giving teachers freedom to choose how they go about their work.
It represents a stark contrast to more rigid US and British curriculum schools in the region where many expatriates send their children.
“We don’t really want to compare the Finnish education with other systems," said Jouni Kangasniemi, program director of Education Finland, in an interview with Arab News. "But it has one of the best education systems in the world and we are ready to share our ‘secrets’ openly. Finnish expertise is one of the late-comers in the market … and it is well worth exploring what kind of alternatives we have to offer. Education systems in most countries rely heavily on standardized testing and inspections. In Finland, we do not believe – nor need standardized heavy testing or school inspectors to supervise the quality of instruction.” he added.
Among the Finnish educational system’s key features is a national pre-primary curriculum that is focused on holistic, play-based learning and skills development.
“Our teachers are professionals of learning sciences and focus on helping every child flourish. The education methods are improved continuously. There is a lot of innovation happening in all our schools every day. Students learn and are happy to go to school at the same time,” said Kangasniemi.
Students start first grade education at seven-years-old compared with six for the American system and even younger for the British system where children have entered school by the time they are five.
“It is a very odd situation in an international comparison – as in many countries learning outcomes are good, but students are very stressed and tired of long school days,” Kangasniemi said.
The initial successes of Finnish schools and education providers which have established a foothold in the region do not mask the challenges they face.
Omnia Education Partnerships CEO Mervi Jansson recalls an entrepreneurial course it conducted for 130 Saudi high school students, most of whom had aspirations of careers with national oil company Aramco.
“They used to think entrepreneurship was only for those who failed university,” Jansson said. “We took the Finnish competencies and built this into a course suitable for Saudi Arabia, we localized it. We taught the Saudi teachers, we supported them and they taught the course in their own schools.”
“I think Saudi Arabia needs to look at their education strategy in terms of lifelong learning, in terms of how to provide upskilling and reskilling for a large variety of population but also to see what kind of program they should offer to the youth that is more interesting.”
Jansson was nonetheless heartened by the positive feedback from Saudi education officials and hoped the course would be “expanded into 100 Saudi schools,” plus a potential partnership in the UAE.
Meanwhile Finnish Global Education Solutions is starting the first early childhood education center in the MENA region, CEO Antti Kaskinen told Arab News.
“We cannot yet officially divulge which country it is because we want the Finnish and host country’s ministers of education to meet first, and make the partnership official,” Kaskinen said.
“We are also looking into schools and teachers’ education in Saudi Arabia. We are holding ongoing negotiations [at an early stage] and met in December concerning this. It looks quite good … by the end of this year we will have something,” Kaskinen added.
Helsinki International Schools and its Saudi partner EduGuide for Education and Training, meanwhile, signed two new agreements to open three Finnish-based schools in the Kingdom – one in Riyadh this year, and one each in Jeddah and Dammam by the end of 2021.
Other Finnish education companies are looking forward to open in the region despite tough competition, and which Education Finland’s Kangasniemi said the Nordic government is actively involved in.
“An important part of our work is to maintain a constructive dialogue between the decision makers and ministries of education both in the Gulf and in Finland, aside from providing training on cultural and business aspects in the Gulf markets,” he said.