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Mon 26 Sep 2016 12:45 PM

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Qatar-Indonesia’s $1bn investment fund in 'final stages'

Fund was relaunched in 2015 to boost Indonesia’s infrastructure, roads, power plants, ports, mining, and communications

Qatar-Indonesia’s $1bn investment fund in 'final stages'
Jakarta, Indonesia. (Bay Ismoyo/AFP/Getty Images)

A $1bn joint investment fund (JIF) by Qatar and Indonesia is now in its final stages and is expected to fund key infrastructure and energy projects in Indonesia, according to a special envoy to the Indonesian president for Middle East Affairs.

Dr Alwi Shihab following a meeting with Qatar Chamber vice chairman Mohamed bin Towar al-Kuwari, said the Indonesian government is waiting for the Qatar Investment Authority (QIA) to choose from several projects it has prepared for the fund.

The JIF was relaunched in 2015 by state leaders after being set up in 2008 and then halted for what the Indonesian Minister of Foreign Affairs called “a number of factors”, reported Gulf Times.

“This joint investment fund should be, as soon as we can, made into a reality because the Indonesians have already provided four to five projects to be picked by the Qatar Investment Authority in order for us to show the Indonesian people that the investment is there,” Shihab said.

“The reactivation of the joint investment fund in 2015 is a manifestation to improve the economic cooperation between Qatar and Indonesia. It will be utilised in infrastructure, roads, power plants, ports, mining, and communications. Negotiations are underway,” he added.

Qatar will provide 85 percent of the funds for the JIF, while Indonesia will provide 15 percent.

The JIF is meant to improve Indonesia’s infrastructure according to Indonesian President Joko Widodo.

The President visited Qatar in 2015 to encourage its government and business community to invest in Indonesia’s mega projects including 24 new seaports, 15 new airports, 2,630km of new roads, 35,000MW power plants, and mass rapid transportation systems.

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