Qatar renews investment commitment

Nani Afrida, The Jakarta Post, Jakarta | Wed, 12/09/2009 10:11 PM

The Qatar Investment Authority, has renewed a 2006 commitment to invest up to US$1 billion in Indonesia to help finance infrastructure projects, an official said.

There is no specific timetable for the investment as yet, as the firm would first carry out feasibility studies on a number of projects in which it is interested in particular energy-related infrastructure projects such as a fuel refinery and power plants, said Aidil Chandra Salim, director for Middle East Affairs at the Foreign Affairs Ministry, Wednesday.

“Finally the Qatar Investment Authority (QIA) has renewed its agreement with the Indonesia government.

“The company has agreed to invest $1 billion in infrastructure development in the country, which is bigger than its [previous] commitment,” Aidil said on the sidelines of a seminar on Middle East investment.

Aidil was referring to the commitment made in an agreement in 2006 when the QIA – which is backed by the Qatari government, and the Indonesian government agreed to jointly set up a form of investment fund worth about $1 billion, with the QIA planning to contribute 85 percent of the total pooled fund.

The plan was never realized due to several problems, including lack of project guarantees and taxation issues. However, a few months ago the two parties managed to resolve these key issues, Aidil said.