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Analysis: $2 billion Qatar fund puts Danantara on the spot, expectations soar
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A sign for sovereign wealth fund Danantara Indonesia is seen in front of its headquarters in Jakarta on Feb. 28, 2025. (Reuters/Willy Kurniawan)
I
ndonesia and Qatar have launched a US$4 billion joint investment fund, co-managed by Indonesia’s Danantara investment agency and the Qatar Investment Authority (QIA), marking a major milestone in President Prabowo Subianto’s Middle East diplomacy. While the agreement signals strong international confidence in Indonesia’s economic prospects, it also raises mounting expectations for Danantara to provide liquidity for domestic projects despite lingering concerns over its financial capacity.
The announcement was made during President Prabowo’s official visit to Doha on April 13, following a bilateral meeting with Emir Sheikh Tamim bin Hamad Al-Thani at the Amiri Diwan Palace. Under the agreement, Qatar will contribute $2 billion, matched by Danantara, bringing the total fund size to $4 billion.
Danantara CEO and Investment and Downstream Minister Rosan Roeslani stated that the fund would target long-term strategic sectors, including downstream industries, healthcare, renewable energy, technology and other high-impact initiatives. The aim, he said, is to accelerate Indonesia’s economic transformation and draw more global capital into national development.
The fund’s announcement has fueled expectations from various sectors hoping to secure financing. Public Housing and Settlement Minister Maruarar “Ara” Sirait expressed optimism that Danantara could support President Prabowo’s flagship program to build three million homes annually. Although Ara suggested that Qatar’s capital might be allocated for housing, he acknowledged that final decisions would depend on Danantara’s internal evaluations.
Ara’s remarks underscore the growing political significance of Danantara as a key financial vehicle for the administration’s signature programs. Pressure is mounting ahead of a projected Rp 59.11 trillion (US$3.69 billion) dividend transfer from state-owned banks by the end of April, with many anticipating that Danantara will rechannel these funds into national development efforts.
Energy and Mineral Resources Minister Bahlil Lahadalia has urged Danantara to allocate part of its capital to support Indonesia’s downstream resource agenda. Meanwhile, regional leaders, including Nusantara Capital Authority chief Basuki Hadimuljono, are lobbying Danantara to fund infrastructure projects that have been left in limbo following substantial government budget cuts.
At the same time, Coordinating Economic Minister Airlangga Hartarto has proposed a plan to the White House in response to retaliatory tariffs introduced by United States President Donald Trump. The plan envisions Danantara encouraging state-owned enterprises (SOEs) to invest in the US, particularly in the oil and gas sector, with Pertamina expected to take a leading role.
