Indonesia’s wealth fund Danantara has agreed to create a US$4 billion joint investment fund with Qatar to enhance investments in Indonesia.

This agreement was reached during a meeting between Qatari Emir Sheikh Tamim bin Hamad Al Thani and Indonesian President Prabowo Subianto in Doha on April 12.

Both parties will contribute US$2 billion each to the fund, as confirmed by Pandu Sjahrir, Danantara’s chief investment officer.

He said on April 13 that the fund will focus on investments within Indonesia, although specific details were not disclosed.

Danantara, established this year, acts as an investment vehicle for Indonesia’s state-owned enterprises.

The fund plans to direct dividends received this year toward national strategic projects, with a focus on food and energy security and commodity downstreaming.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Qatar investment represents a crucial boost amid Indonesia’s declining FDI trends

The $4 billion joint fund comes at a strategic time for Indonesia’s investment landscape, as the country experienced a 10.59% decline in foreign direct investment in 2023, dropping to $22.09 billion from the previous year1.

This Qatar partnership will contribute significantly to reversing this downward trend, with the $4 billion joint fund representing approximately 18% of Indonesia’s total 2023 FDI inflows.

Danantara’s ability to secure this commitment early in its existence demonstrates Indonesia’s renewed investment appeal under President Prabowo’s administration, which has set ambitious targets to accelerate growth from 5% to 8% annually2.

The fund’s focus on strategic sectors like food security, energy, and downstream processing aligns perfectly with Indonesia’s development priorities while providing Qatar with access to Southeast Asia’s largest economy.

2️⃣ Growing Qatar-Indonesia economic relationship extends beyond the investment fund

The $4 billion fund announcement builds upon rapidly expanding bilateral economic ties, with trade between Qatar and Indonesia reaching $1.13 billion in 2024—representing a 13.5% increase from $3.64 billion in 20233.

This investment follows Qatar’s earlier commitment to develop one million apartments in Indonesia, with the first phase projected to involve $18-20 billion in funding4.