Uganda and Indonesia Deepen Economic Ties, Boosting Trade, Tourism, and Halal Market Growth at Forum

The Uganda–Indonesia Business Forum took place on Thursday, July 10, 2025, at Park Hyatt Hotel, Jakarta and was a huge step in the burgeoning relationship between the nations. The high-profile forum brought together government officials, industry leaders and investors all of whom are seeking to develop sustained partnerships across crucial sectors including tourism, trade, minerals, oil and gas, and digital innovation.

The forum underscored mutual investment as an increasingly important foothold for advancing and deepening economic links. Both countries being interested in maximizing their comparative advantages, the event served as a platform for sustained growth and strategic long-term partnerships.

A Rising Trade Partnership

Uganda-Indonesia trade has also seen a rapid expansion at 47.25% between 2020 and 2024. Trade turnover surged to US\$52.8 million in the first quarter of 2025, from US\$8.9 million. This shows the expanding economic relations between both countries.

Uganda, a country rich in natural resource and strategically located in East Africa, is becoming a new favorite destination for Indonesian investors. A fast-growing digital infrastructure, young workforce and membership of key regional trade groups give the country huge appeal as a foreign investment hub.

Priority Areas of Investment Opportunities

Uganda’s economy has multiple investment opportunities and opportunities spread across different sectors, including sectors where Indonesian expertise and businesses could be grounded. Some areas with the most potential for collaboration are:

Digital Services and ICT : The rapidly expanding digital economy in Uganda offers a wide variety of investment opportunities in BPO, software development, and other digital services. Investment in coding bootcamps, tech companies and digital infrastructure can boost the country’s growing tech ecosystem.

Agribusiness: With its agriculturally rich land, Uganda represents substantial opportunities in agribusiness, especially as it relates to rice production and other crops.

Textile and Garments: With a skilled but relatively cheap workforce, Uganda has great potential to get into the production of textile and garments, a high export-demand industry.

long-term potential for the development of eco-lodges, resorts and training establishment.* Tourism and Hospitality: Uganda has a growing tourism industry that offers the potential to develop eco-tourism to the Ugandan consumers and international market Lira and Kyegegwa have observed significant growth in the tourism industry. Its natural and cultural attractiveness makes the country an ideal place to invest in sustainable tourism infrastructure.

Mining and Energy: The natural potential for mining and green energy is extensive with available investment opportunities in the mineral sector along with in the oil and gas infrastructure. The country is also developing its energy industry to cater for increased demand.

Logistics and Halal Supply Chains: As Uganda becomes more interested in halal markets, the logistics and supply chain industry is also adapting to the demands of international halal trade. This is an opportunity for Indonesian businesses to take part in developing the halal sectors in Uganda.

Uganda and Indonesia have a great deal of trade complementarity. Uganda exports cocoa, leather, and commodities to Indonesia, and Indonesia supplies Uganda with steel, machinery, and adhesives.

Intensification in cooperation of tourism and halal industry

Tourism is one promising field of bilateral cooperation. Uganda signed a bilateral tourism agreement with the Association of the Indonesian Tours and Travel Agencies (ASITA) to develop tourism infrastructure in Uganda during the meeting. The partnership follows a successful familiarization tour of Ugandan tourism led by Indonesian tour operators in 2024 to ascertain the country’s tourism offerings.

Aligning to its ambition of being a halal power, Uganda is laying the groundwork to build halal logistics and supply chains. Being strategically located and relatively new entrant to halal economy, Uganda is indeed an interesting partner for Indonesia, one of the biggest halal economies in the world.

Investors Incentives in Uganda

Uganda is very interested in ensuring a conducive and competitive investment climate in order to attract and retain foreign investors. Key incentives for investors include:

• Tax Holidays: Long term operations can take advantage of 10-year tax holidays, a big plus for investors.
• Re-investment Incentives: There are no limitations on re-investment, enabling investor to increase more operations in Uganda.
• Repatriation of Profits Uganda readily permits the remittance of profits to foreign investors.
• Income Tax Exemptions for New Business: Uganda-owned new businesses will receive a three-year income tax waiver effective July 2025, to boost local entrepreneurship.
• Import Duty Exceptions: Business items for production such as machinery are exceptions to an import duty and assist in the cut-cost operations.
• Foreign Ownership: Investors are able to 100% own their companies in Uganda, and are in full control of their operations.

A Better Future of Bilateral Cooperation

Uganda and Indonesia have had a hands-off relationship in the political and economic sectors, but platforms such as these help to plot the way forward for the two countries. Uganda – Positive Factors With rich natural resources, a young population and growing infrastructure, Uganda is in a good position to attract investment across core sectors. The Southeast Asian country is expected to tap into Uganda’s expanding market and the East African region by leveraging its strong economy and capability in different sectors.

The forum served as a platform to deepen cooperation, and was based on sustainable economic development and mutually beneficial partnership. Both countries are also committed to cooperating to harness the full potential of each other’s markets and catalysing growth in the years ahead.

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