DIFC, Indonesia’s Nusantara to enhance financial cooperation

Dubai International Financial Centre (DIFC) has signed a Memorandum of Understanding (MoU) with Indonesia’s Nusantara Capital Authority to enhance international financial cooperation.

Essa Kazim, Governor of DIFC, and M Basuki Hadimuljono, (Acting) Chairman of Nusantara Capital City Authority, signed the agreement at DIFC’s premises in Dubai.

The signing was witnessed by Erick Thohir, Minister of State Owned Enterprises; Dr. Agung Wicaksono, Nusantara Capital Authority Deputy of Funding and Investment; and Endra S. Atmawidjaja, Ministry of Public Works and Public Housing of Indonesia, Senior Advisor to the Minister on Technology, Industry, and Environment; Arif Amiri, Chief Executive Officer of DIFC Authority; and Salmaan Jaffery, Chief Business Development Officer at DIFC Authority.

The MoU outlines a framework for collaboration aimed at advancing mutual interests and the Nusantara Financial Centre in Ibu Kota Nusantara (IKN).

The agreement outlines exchanging expertise in International Financial Centre operations, including regulatory frameworks and business models to enhance operational efficiency and innovation; developing mechanisms enabling entities from DIFC and IKN to ultimately establish registered business operations in each other’s jurisdictions, fostering seamless business integration and participation in global exchanges; as well as collaboration on trends, legislation, and regulations in international financial services to stay ahead of global developments.

“This MoU marks an important milestone for Indonesia in establishing Ibu Kota Nusantara as a leading international financial centre. Our collaboration with DIFC will play a crucial role in creating an attractive investment environment, promoting sustainable development, and contributing to the global financial landscape,” Hadimuljono stated.

Kazim, in turn, said, “As the UAE and Indonesia collaborate and innovate to drive economic growth and social impact in both countries, DIFC as MEASA’s global leading financial centre, is perfectly positioned to facilitate significant opportunities by way of this strategic partnership. Through this agreement with Nusantara Capital Authority, we are forming a new framework to ultimately grow the two financial ecosystems as we come together to drive the future of finance.”

The Indonesian Minister of State-Owned Enterprises and DIFC Authority’s CEO emphasised the partnership’s strategic importance, highlighting its potential to stimulate economic growth and drive innovation through international collaboration.

The Nusantara Financial Centre is planned to be strategically located in the Second Development Area within the expansive Nusantara region, covering 252,000 hectares, presenting significant opportunities for investment. This financial district will encompass approximately 260 hectares within a broader business and financial centre spanning 3,000 hectares.

Meanwhile, construction is progressing in the First Development Area, the core government zone, slated for completion this year, culminating on Indonesia’s Independence Day, 17th August 2024, with essential infrastructure prepared for this momentous occasion.

Earlier as part of Dubai Customs (DC)’s commitment to having stronger ties with foreign diplomatic corps to support the growth of Dubai’s non-oil external trade, Dr Abdullah Mohammed Busenad, Dubai Customs Director General, received K Katarika Candra Negara the Indonesian Consul-General in Dubai, and his accompanying delegation. Indonesia is one of the most important countries in the Association of Southeast Asian Nations (ASEAN) in terms of economic status and manpower.

The Director General of Dubai Customs commended the trade and economic relations between Dubai and Indonesia, and the role of the Indonesian Trade Promotion centre in Dubai. It aims to increase the promotion and export of Indonesian products to the UAE and the Middle East region.

During the meeting, he emphasised that the Comprehensive Economic Partnership Agreement between the UAE and Indonesia promotes trade and investment relations between the two countries. It encourages trade flow, stimulates bilateral trade, and raises its overall value by reducing or eliminating customs duties on a diverse range of goods and services, this opens up new opportunities for exporters and companies from both sides.

He expressed his appreciation for the efforts of Dubai Customs and its role in supporting mutual trade growth between the UAE and the Republic of Indonesia.

He confirmed the Indonesian Embassy’s eagerness to exchange visits and meetings with Dubai Customs to achieve the highest levels of coordination between the two parties in utilizing Dubai’s role as an international hub for global trade in supporting the growth of Indonesian trade.

Last week, Dubai Customs welcomed a high-level delegation from Dubai Chambers, where they discussed ways to collaborate towards achieving the goals of the Dubai Economic Agenda.