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atar, an oil-rich country in the Middle East, enjoys close and friendly relations with Indonesia based on a tradition of goodwill and shared economic interests. It is also emerging as one of Indonesia’s most important foreign investors and trade partners.

“Our relations with Indonesia are very good and strong. Our investments and trade are growing rapidly,” Qatari Ambassador to Indonesia Ahmed A. Al-Mohannadi told The Jakarta Post recently.

The State of Qatar was founded by Sheikh Jasim Bin Mohammed Bin Thani on Dec. 18, 1878. Though Qatar, a former British protectorate, became independent on Sept. 3, 1971, the people of Qatar celebrate their National Day every Dec. 18.

Since establishing diplomatic relations with Indonesia in 1976, Qatar has attached an increasingly greater importance to Southeast Asia’s largest economy.

“Indonesia is a country with the world’s largest Muslim population and has enormous economic potential. That’s why Indonesia is important for us,” Ambassador Mohannadi said.

Qatar, which has the world’s second highest GDP per capita income of US$121,000, is sitting on more than 25 billion barrels of proven oil reserves and 900 trillion cubic feet of proven natural gas reserves. Qatar is the world’s largest producer of liquefied natural gas (LNG).

President Susilo Bambang Yudhoyono realized the potential importance of Qatar and paid a visit in 2006 to Doha to woo investors and strengthen bilateral relations. Qatar Emir Sheikh Hamad bin Khalifa Al-Thani visited Jakarta in 2009.

As a result of vigorous efforts from both countries, Qatari telecommunications company Qtel presently has a 65 percent stake in Indonesia’s second largest telecommunications company, PT Indosat. This investment is worth more than $3 billion.

In May this year, Qatar Holdings, an investment arm of Qatar Investment Authority, established an Indonesian Fund worth $1 billion.

While welcoming the move, Indonesia’s Investment Coordinating Board (BKPM) Chairman Gita Wirjawan said the country is in need of foreign investments for developing infrastructure.

“The main focus area [of the fund] will be on mineral resources and infrastructure projects,” Wirjawan said.

Qatar Petrochemical Company recently opened a representative office in Jakarta.

“Indonesia is really promising. We want to invest more in Indonesia,” Mohannadi said.

Although Indonesia is a major recipient of foreign investments, Indonesian companies have also invested in foreign countries, with Qatar being one of them.

“Yes, it’s true Indonesian companies have invested in Qatar,” Mohannadi confirmed.

According to the Indonesian Foreign Ministry, PT Medco, PT Inti Karya Persada Tehnik, PT Rekayasa Industri, Valco Group and other companies have operations in the oil and gas industries in Qatar. State oil company PT Pertamina operates Qatar’s Sector-3 oil and gas block in cooperation with German company Wintershall and Cosmo Energy from Japan.

On the investment side, the Ministry’s website said, PT Adhi Karya has won a $500 million contract to construct five-star hotels like Shangri-La, Marriott Renaissance and Rotana in Qatar. PT Asia Building Products also won contracts to build harbor facilities in Qatar.