Qatar, Indonesia set up fund to invest in energy

Gas exporters Qatar and Indonesia have set up a $1 billion (Dh3.67bn) fund to invest in energy and infrastructure, Indonesia's ambassador to Qatar said in a statement yesterday.

Qatar is the world's largest exporter of liquefied natural gas (LNG), while Indonesia is the third-largest. Both countries are also members of the Opec. They are among Opec's smallest producers.

Qatar will contribute 85 per cent of the funds for the new fund and Indonesia the remainder, the Qatar daily newspaper the Gulf Times quoted ambassador Rozy Munir as saying.

Qatar's state investment fund, the Qatar Investment Authority (QIA), had signed a memorandum of understanding with the Indonesian Government, he said.

Gulf government funds, with windfall income from energy exports, have set up several joint funds. The QIA teamed up with Abu Dhabi government-owned International Petroleum Investments Corporation (IPIC) in March to launch a $2 billion fund. The QIA has also set up joint funds with Oman and Dubai.

Sovereign funds from the Middle East, Asia, Russia and China have poured billions of dollars into large stakes in Wall Street firms, arousing concern among lawmakers that politics may be influencing investments.

Indonesia is expected to attract more Qatari investment soon, Munir was quoted as saying. New bills on Islamic banking and bonds should help, he said.

The country also hoped Qatar would follow Saudi Arabia in investing in its agriculture industry, the newspaper reported. "There are great opportunities for a possible investment in this sector," he said.

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