Indonesia and Qatar to set up $4bn joint fund

Indonesian sovereign wealth fund Danantara Indonesia and Qatar Investment Authority will set up a joint fund worth $4 billion to invest in so-called domestic priority sectors in the southeast Asian country.

These include food and energy security, downstream processing, digital infrastructure, healthcare and tourism, Indonesian state-run Antara news agency reported, quoting Danantara chief investment officer Pandu Sjahrir.

Each country will contribute $2 billion to the fund, he said.

The announcement comes a day after Masdar, the renewables champion of Abu Dhabi, said that it would build floating solar power projects in Indonesia.

Sjahrir said the investment is separate from Qatar’s previous input into Indonesia’s housing industry. In January Qatar announced it will start developing 1 million apartments in Indonesia in April to address the country’s housing shortage under a government initiative to build 3 million homes.

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The Gulf nation will invest an estimated $18 billion to $20 billion in the first phase, state-backed Housing Task Force Head Hashim Djojohadikusumo said.

Abu Dhabi’s Mubadala Investment Company is also expected to invest in 1 million apartments, the news report said.