Qatar and Indonesia’s Danantara Set Up $4 Billion Fund

Indonesian President Prabowo Subianto on Sunday said that the country’s sovereign wealth fund (SWF) Danantara had secured a commitment from Qatar to invest approximately $2 billion.

Prabowo made these remarks after his state visit to Qatar and also confirmed that he had fruitful talks with Qatar’s Amir H H Sheikh Tamim bin Hamad Al-Thani and the discussions revolved around the Indonesia’s SWF that had only come into existence in late February.

“The Amir said that Qatar will invest with Danantara through a joint fund and he has committed a $2 billion investment and Danantara will contribute equal amount. He was very enthusiastic about it,” Prabowo told reporters later. However, he did not say the type of project that Qatar was interested in co-investing with Danantara.

Indonesia plans to put around $2 billion in the said Danantara project, alluding to a co-investment scheme.  Since its inception, Danantara has opened its doors to foreign investors to co-invest in strategically important projects.

Investments in Energy Sector

Prabowo’s senior economic advisor Luhut Binsar Pandjaitan claimed that an Emirati investor was looking to invest in Indonesia’s renewable energy sector by establishing a joint venture in partnership with Danantara.

The SWF will consolidate assets of Indonesia’s state-owned enterprises and hold an initial capital of $20 billion. The capital will direct this money toward strategically important projects, including mineral processing, renewable energy, petrochemicals, and many more.

Prabowo’s state visit also saw the signing of a memorandum of understanding (MOU) aimed at establishing a strategic dialogue between the two governments. Under this deal, both countries will engage in a series of strategic dialogues on key aspects such as the economy, agriculture, tourism, science, and technology, among others.