UAE Outreach
Palu is stepping up its special economic zone pitch by courting United Arab Emirates capital. The move follows a visit by UAE Ambassador Abdulla Salem Al Dhaheri and comes as the city markets itself as a logistics and industrial hub near Indonesia’s new capital, Nusantara.
Mayor Hadianto Rasyid said Palu is in an early phase of talks with the UAE. He said both sides are now exchanging information on possible investment plans.
He also said the city will offer streamlined licensing and support for infrastructure development. Palu will coordinate closely with the central government and SEZ management, he added.
The mayor framed the ambassador’s visit as an opening move, not a final deal. However, it gives Palu a chance to present the zone as more than a local project.
Palu is pitching the SEZ as a growth centre in Central Sulawesi. Its location gives it access to domestic routes and wider regional trade flows. That matters for investors seeking industrial sites with logistics upside.
Logistics and Energy Case
Pantoloan Port is one of Palu’s strongest selling points. According to the city’s presentation, the port has a natural depth of around 18 metres. That allows large cargo vessels to dock without major dredging.
This gives Palu an edge for industrial and logistics-led investment. It also supports the city’s case as a distribution node close to Nusantara. That proximity may appeal to investors seeking future-facing infrastructure exposure.
The SEZ already has momentum behind it. ANTARA reported that Palu SEZ has secured US$1.75 billion for a battery gigafactory and LNG hub. It also reported a separate US$20 million LNG investment. CNBC Indonesia said the US$1.75 billion project was signed in May with Singapore-based Aslan Energy Capital.
Together, those commitments point to a cluster forming around batteries, LNG and clean-energy supply chains. For investors, that mix combines downstream industry with energy transition themes. It also suggests Palu is trying to position itself within Indonesia’s broader SEZ push.
The policy backdrop is favourable as well. Indonesia and the UAE have a Comprehensive Economic Partnership Agreement in force. That agreement gives Palu a wider trade and investment framework for UAE participation in Indonesian projects.
Palu is therefore using diplomacy, port assets and policy support to strengthen its Palu SEZ investment pitch. For investors, the key watchpoint is whether these exploratory talks turn into structured UAE commitments, and whether Palu can convert headline projects into a deeper industrial base.
