Indonesian wealth fund Danantara and Qatar have agreed to pool $4 billion for investments in Southeast Asia’s largest economy, marking the new fund’s first planned venture with foreign investors.
The two parties agreed to invest in a joint investment fund after a meeting between Emir Sheikh Tamim bin Hamad Al Thani and Indonesian President Prabowo Subianto in Doha on April 13, according to both governments.
Danantara Chief Investment Officer Pandu Sjahrir said April 14 via text message that both entities would contribute $2 billion each. He said the venture would be for investments in Indonesia, without elaborating.
Danantara, which intends to operate as both an investment vehicle and a holding company for Indonesia’s state-owned enterprises, launched this year as part of Prabowo’s plans to accelerate growth. The fund expects to receives billions of dollars from dividends this year, some of which it plans to invest in national strategic projects ranging from food and energy security to commodity downstreaming.
Longer term, fund executives have said they hope to attract foreign investment into Indonesia in the form of co-investments.
Prabowo was accompanied during the Doha meeting by Danantara Chief Executive Rosan Roeslani and the minister for public housing and settlements, Maruarar Sirait, who earlier this year signed a pact with Qatar in which the Middle Eastern nation pledged to help develop a million homes in Indonesia.
