Qatar to invest $2B in Indonesia sovereign wealth fund

Indonesia’s President Prabowo Subianto speaks during an economic event titled “Strengthening Indonesia’s Economic Resilience Amid the Wave of Trade Tariff Wars” in Jakarta.  He welcomes Qatar’s investment of $2 billion in his new sovereign wealth fund. (Photo by Yasuyoshi CHIBA / AFP)

JAKARTA, Indonesia – Indonesian President Prabowo Subianto said Qatar is set to invest $2 billion in his country’s new sovereign wealth fund as he looks to boost economic growth.

Prabowo is on a five-nation tour of the Middle East, visiting the United Arab Emirates, Turkey, Egypt, Qatar and Jordan to boost bilateral ties with the region.

He said Sunday he had a “productive” meeting with Qatar Emir Sheikh Tamim bin Hamad Al-Thani and that the country would invest in the Danantara Indonesia fund.

READ: Indonesia’s new sovereign wealth fund: what to know

Danantara Indonesia was launched in February by President Prabowo Subianto who pledged to ramp up annual growth from five to eight percent, while ordering billions of dollars in government cuts.

The fund will take control of government holdings in state companies with an initial budget of $20 billion.

It is the country’s second sovereign wealth fund, after the Indonesia Investment Authority, which was launched in 2021 and holds $10.5 billion in assets.

Danantara announced its full board lineup last month with American billionaire Ray Dalio and former Thailand prime minister Thaksin Shinawatra appointed as advisors.

Jakarta has planned more than 20 energy projects worth around $40 billion this year, energy and mineral resources minister Bahlil Lahadalia said in March, partly funded by Danantara.