DUBAI: The United Arab Emirates will invest US$10 billion in Indonesia’s new sovereign wealth fund to be spent on projects inside Southeast Asia’s biggest economy, the UAE state news agency reported on Tuesday (Mar 23).
This marks the biggest foreign investment commitment for the Indonesia Investment Authority (INA) and the first since its February launch.
Authorities have previously said the INA had also received commitments of up to US$10 billion prior to its launch, from global companies and agencies, such as the US International Development Finance Corporation and Japan Bank for International Cooperation, and some foreign pension funds.
Jakarta will seed the fund with US$5 billion in cash and other assets. Unlike many other sovereign wealth funds, which manage excess oil revenues or foreign exchange reserves, the INA seeks foreign funds as co-investors to finance the country’s economic development and aid pandemic recovery.