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Satyendra Pathak
Doha
The $1 billion Qatar-Indonesia joint infrastructure fund (JIF) will soon start investing in various upcoming infrastructure projects in Indonesia, a top envoy has said.
Talking to Qatar Tribune on the sidelines of Indonesia-Qatar Economic Seminar in Doha, Special Envoy to Indonesian President for Middle East Alwi Shibab said that Indonesian officials have discussed many airport, road and port projects with Qatari officials where the JIF fund can be invested.
Qatar has to take the final call as the country has 85 percent share in the $1 billion JIF, Shibab said adding that the first investment by the fund in Indonesia might happen at the end of this year.
"We had a very fruitful talk with the Qatari stockholders of the fund. They have shown keen interest in many of the projects. We hope the projects for investment will be finalised soon," the special envoy said.
Officials of Indonesian Trade Promotion Centre (ITPC), Indonesian Investment Promotion Centre (IIPC) and five top Indonesian corporations are currently in Doha to finalise the projects with the Qatari officials, Shibab said.
Shibab said that a special team from Qatar will visit various parts of Indonesia soon to take stock of the discussed projects at the ground level.
Established in 2008, the JIF could not take off till the visit of Indonesian President Joko Widodo in 2015 due to a number of factors.
During Widodo's visit, both Qatar and Indonesia decided to reactivate the fund to fuel growth in infrastructure and energy projects between the two countries.
After several years of delays, the envoy said, an office for execution of the fund has also been set up in Indonesia.
Talks are also on to use the fund for oil and gas projects as well.
The envoy said that Qatar is also setting up 500-megawatt power plant in Indonesia.
The agreement between Qatar-based Nebras Power and Indonesia State Electricity Corporation (PLN) to set up the power plant last year is another testimony of growing economic and mutual trust between the two countries.
The gas-fired plant located in northern Sumatra will also include a gas-receiving terminal to ensure uninterrupted gas supply for power generation.
Shibab said that Indonesia is also in talks to sign long-term LNG deal with Qatar to meet its growing energy demand.
Though Indonesia is a gas producing country, it requires more energy, the envoy said adding that the energy deal might come in force in the near future.
"Currently we are importing gas from Iran. However, we also need bigger energy producers like Qatar to ensure that our energy demands are fulfilled," Shibab said.
Indonesia's energy demands will continue to increase as the country is embarking on a number of gas-fired power projects, the envoy said adding that Qatar's track record as a reliable energy supplier across the globe will make it vital source of energy for us in the future.
The envoy said that talks are also going on to improve the volume of trade between the two countries which currently stands at a moderate QR5.5 billion per year.
