Indonesia and Qatar Form Danantara Investment Partnership (2025)

Indonesia and Qatar have officially launched a US$4 billion joint investment fund, marking a major leap in bilateral economic cooperation. The announcement came during President Prabowo Subianto’s visit to Doha in April 2025, underscoring the significance of sovereign-to-sovereign partnerships in shaping long-term development.

This fund represents a pivotal moment for Danantara Indonesia, the country’s newly established sovereign wealth entity. As its first major international initiative, the collaboration with Qatar reflects Indonesia’s intent to harness sovereign capital to accelerate industrial transformation, infrastructure expansion, and green economic growth.

Danantara and QIA join forces to mobilize sovereign capital

The investment fund is jointly managed by Danantara Indonesia and the Qatar Investment Authority (QIA), with each party committing US$2 billion. Danantara, launched in February 2025, was created as a Temasek-style investment vehicle to manage and revitalize Indonesia’s state-owned enterprises while attracting foreign direct investment.

Qatar’s involvement is equally significant. The partnership sends a strong message to international markets that Indonesia is open for high-level, strategic capital and that it can meet the institutional standards required by global sovereign funds.

Target sectors reflect Indonesia’s long-term development goals

The fund is expected to focus on critical sectors aligned with Indonesia’s national development priorities. These include downstream mineral processing, renewable energy, food security, healthcare, and digital infrastructure. Each of these sectors plays a central role in the country’s strategy to become a more self-reliant, technology-driven economy.

Opportunities are expected to emerge in major initiatives like Nusantara, the new capital city, as well as in Special Economic Zones (SEZs) and regional industrial parks. Investments through this fund could help de-risk infrastructure and green projects that would otherwise be seen as high-capex and long-gestation.

Qatar eyes Indonesia for diversification and growth potential

Qatar’s participation in this fund reflects a broader trend of Gulf sovereign wealth funds expanding into Southeast Asia. As it looks to diversify its wealth beyond hydrocarbons, Qatar is targeting dynamic emerging economies, and Indonesia—with its large population, stable macroeconomy, and abundant natural resources—is a natural fit.

The deal adds to Qatar’s growing portfolio of Asian investments and supports its long-term objective of partnering with high-growth markets. This move also strengthens ASEAN–Gulf economic integration, as seen with similar deals in Malaysia and Vietnam.

What the joint fund means for global investors in Indonesia

Beyond the bilateral narrative, the launch of this fund offers a broader confidence signal to international investors. Projects backed by Danantara and QIA are likely to carry lower perceived risk due to sovereign involvement, long-term financing structures, and alignment with government priorities.

There may also be syndication opportunities where third-party investors, such as institutional funds or strategic multinationals, can co-invest alongside the fund in vetted projects. The presence of sovereign investors may also accelerate permitting processes and enhance project bankability.

• Previous Article Singapore Forms Taskforce to Safeguard Economic Growth
• Next Article The Future of Power in Vietnam: Strategy, Security, and Sustainability