Indonesian sovereign wealth fund Danantara plans to continue increasing its investments in the Middle East despite the ongoing war involving Iran (15/04).

Chief investment officer Pandu Sjahrir said the fund remains committed to the region, including Saudi Arabia, while speaking in an interview on the sidelines of a conference in Hong Kong.

He stated that the current conflict is expected to have lasting effects even if it ends soon, with economic impacts likely to continue for nine to twelve months.

Saudi Arabia and Mecca Remain Key Long-Term Investment Targets

Danantara will continue investing in Saudi Arabia, with a particular focus on Mecca, which it considers a strong long-term asset.

Pandu Sjahrir said Saudi Arabia’s opening to foreign investment is significant and described Mecca as a consistently strong investment destination.

He added that Danantara has already invested in the city through the purchase of land and a hotel, marking one of its early overseas investment moves.

US$14 Billion Investment Plan with Focus on Energy Security and Critical Minerals

Danantara plans to deploy approximately US$14 billion in 2026 across various asset classes.

According to Pandu Sjahrir, investment allocation will increasingly favor energy security due to rising global demand, including needs driven by artificial intelligence and digital infrastructure.

He also noted that critical minerals will be another key focus area in the fund’s investment strategy.

Global Partnerships with Sovereign Wealth Funds in China, Qatar, and Russia

Danantara is expanding cooperation with international sovereign wealth funds, including China Investment Corp, with both sides committing around US$500 million each to invest in general partners and fund managers.

The fund also maintains collaboration with the Qatar Investment Authority, particularly in real estate investments in Indonesia.

Separately, Danantara had previously agreed with Russia’s Direct Investment Fund to launch a joint investment platform, although limited progress has been made so far.

Pandu Sjahrir said discussions with Russia may develop further following the changing global dynamics and recent diplomatic engagements.

PHOTO: KONTAN/BAIHAKI

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