MoU signing between Etihad Credit Insurance and Republic of Indonesia State-Owned Indonesia-Re

The UAE Federal Company Etihad Credit Insurance and Indonesia Re to work on easing trade and export between UAE and Indonesia; facilitate access of SMEs and Mid-caps to funding; and utilise Shariah compliant insurance and finance solutions to grow halal trade

Partnership follows the official economic mission led by His Excellency Dr.Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade to Bogor last September, where he met the Honorable Mr. Joko Widodo, President of the Republic of Indonesia and His Excellency Muhammad Lutfi, Minister of Trade of the Republic of Indonesia and talked about enhancing trade ties,economic and investment opportunities

Etihad Credit Insurance, the Federal export credit company of the UAE and Indonesia Re, the state-owned reinsurance agency of Indonesia have signed an agreement to boost bilateral exports and investments through their trade credit insurance, reinsurance and guarantees.

The MoU was signed by Benedictus Mulyawan Waworuntu, President Director of PT Reasuransi Indonesia Utama and Massimo Falcioni, CEO of the Federal Company Etihad Credit Insurance, in the presence of His Excellency Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade and Deputy Chairman of ECI Board of Directors and His Excellency Kartika Wirjoatmodjo, Vice Minister of State-Owned Enterprises Republic Indonesia and a high delegation from both countries of Government officials, Chamber of Commerce and UAE entrepreneurs.

Indonesia, which has the largest economy in Southeast Asia, is one of eight countries which the UAE is seeking trading agreements with as part of the ‘Projects of the 50’.

Commenting on the agreement His Excellency Dr. Thani bin Ahmed Al Zeyoudi, said: “The UAE considers Indonesia as a vital strategic partner and this agreement will be a significant force in creating new opportunities, attracting FDI, boosting trade and exports, and accelerating the global economic recovery. Greater collaborations like this will enhance sustainable development and will fuel the growth of UAE’s knowledge-based economy.”

Meanwhile, His Excellency Mr. Kartika Wirjoatmodjo, said: “Indonesia and the UAE have enjoyed remarkable trade and relations for a long time. With this agreement, we are pleased to strengthen these ties by collaborating with Etihad Credit Insurance in the area of trade credit insurance and reinsurance. This will assist us in achieving our goals in developing more export markets for Indonesian companies.”

Under this agreement, ECI and Indonesia Re will work on easing trade and export between UAE and Indonesia; facilitate access of SMEs and Mid-caps to funding; and utilise Shariah compliant insurance and finance solutions to grow halal trade.

Both organisations will also collaborate in enhancing business relations of the two countries; provide information on ongoing and potential new projects; explore opportunities for insurance, reinsurance, and co-insurance for export and investments; explore recoveries of claims to be collected in Indonesia or in the UAE; and share expertise and best practices in commercial underwriting, risk management, country assessment, claims and recovery. ECI and Indonesia Re will also support strategic economic sectors such as steel and aluminium, ceramics, renewable energy, mechanical, and waste management industries.

Though the two predominant Muslim nations established diplomatic ties 45 years ago, their relationship started to gain momentum over the last few years as Indonesia began seeking new sources of investments to finance ambitious infrastructure programs, while the UAE accelerated efforts to wean itself off reliance on oil.

The UAE’s long-established bilateral relationship with Indonesia is rooted in close cultural ties and a shared commitment to facilitating greater economic development and prosperity between the countries. During the last five years, the total worth of non-oil trade between the countries surpassed $11 billion. In 2020, the total value of the UAE’s non-oil trade with Indonesia stood at $2 billion.