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UAE commits $10 billion for Indonesia’s SWF
The United Arab Emirates has become the largest anchor investor in Indonesia’s sovereign wealth fund (SWF) with plans to inject US$10 billion at the directive of Crown Prince Mohammed bin Zayed al-Nahyan.
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President Joko "Jokowi" Widodo chats with Abu dhabi Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan from UAE during the prince's visit at Bogor Palace in West Java in July 2019. (JP/Seto Wardhana)
T
he United Arab Emirates (UAE) has become the largest anchor investor in Indonesia’s sovereign wealth fund (SWF) to date after announcing plans to inject US$10 billion at the directive of UAE Crown Prince Mohammed bin Zayed al-Nahyan.
Indonesia’s embassy in the UAE wrote on Tuesday that the Middle Eastern country’s promised funds outweighed those of Japan, Canada and the United States, among other big-ticket investors in the SWF.
The funds would go to the Indonesia Investment Authority (INA), which is the SWFs legal entity, to finance roads, ports, tourism and agriculture, among others projects deemed lucrative.
“We hope the INA manages the funds to improve funding access for various development projects without accumulating debt, implements international best practices and improves the performance and utilization of assets for the benefit of the people,” said Indonesian Ambassador to the UAE Husin Bagis.
Read also: A different species of SWF
The Embassy wrote that the commitment had been finalized after Indonesian President Joko “Jokowi'' Widodo had called Prince bin Zayed on Friday. It described the deal as the “sweet fruit” arising from the call.
Indonesia created the INA to finance domestic development projects, including the planned new state capital in Kalimantan, by pooling funds from development aid agencies, local state-owned enterprises (SOEs) and foreign investors, among other sources.
