Qatar Commits $2 Billion to Indonesia’s New Sovereign Wealth Fund

Indonesia is poised to receive a significant economic boost as Qatar pledges a $2 billion investment into the country’s newly launched sovereign wealth fund, Danantara Indonesia.

President Prabowo Subianto made the announcement on Sunday during his multi-country tour of the Middle East aimed at strengthening diplomatic and economic ties.

The Indonesian leader described his meeting with Qatar’s Emir, Sheikh Tamim bin Hamad Al-Thani, as “productive,” noting the commitment as a key milestone in advancing Indonesia’s development agenda.

The Qatari funds are set to flow into Danantara Indonesia — the second sovereign wealth fund established by Jakarta — which was officially launched in February under Prabowo’s leadership.

With a bold vision to elevate Indonesia’s annual economic growth from 5% to 8%, Danantara is central to Prabowo’s fiscal strategy. The fund will manage government stakes in various state-owned enterprises and is kicking off with a robust $20 billion in capital.

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The move also aligns with a broader directive from Prabowo to implement billions in government spending cuts while maximizing investment potential.

Danantara’s ambitions are backed by heavyweight advisors, including American hedge fund titan Ray Dalio and former Thai Prime Minister Thaksin Shinawatra, who joined the fund’s board in March.

This latest Qatari investment adds momentum to Prabowo’s strategic outreach in the region, which also includes visits to the UAE, Turkey, Egypt, and Jordan. The president’s economic diplomacy coincides with an aggressive development plan back home.

Indonesia is targeting more than 20 major energy projects this year, with a total estimated value of $40 billion, according to Energy and Mineral Resources Minister Bahlil Lahadalia. A significant portion of these projects will be supported by Danantara’s funding.

Qatar’s investment signals growing global confidence in Indonesia’s economic trajectory and the government’s push to turn the country into a key player in regional and global markets. As President Prabowo continues his Middle East tour, more partnerships and pledges may be on the horizon, setting the stage for a new era of economic diplomacy.