CMMA Luhut Panjaitan and CEO of the Qatar Investment Authority Sheikh Abdulla bin Mohammed bin Saud Al-Thani, signed a Memorandum of Understanding (MoU) invest US$500 million to increase the Development in the field of tourism on August 1 - Photo by CMMA Office
JAKARTA (TheInsiderStories) – Qatar Investment Authority (QIA) signed a Memorandum of Understanding (MoU) with Indonesian government on the US$500 million’s investment to increase the Development in the field of tourism in the country, said Maritime Coordinating Ministry office on Wednesday (01/08).
The MoU signed by CEO of QIA Sheikh Abdullah bin Mohammed bin Saud Al-Thani and Coordinating Minister for Maritime Affairs (CMMA) Luhut Binsar Panjaitan at his office in Jakarta.
He said, the funds will be used to develop tourism projects contained in the 10 priority Destinations Tourism by Indonesia. The destination is projected as the largest contributor to the GDP of Indonesia in 2030. The MoU was also an opportunity to invite colleagues QIA other investors to invest alongside.
“I believe that through this partnership, with commitments from both sides, investment cooperation will be beneficial not only for the government but also the Indonesian people around projects of tourist destinations that. I hope soon QIA can start elaborating and implementing its investment plan in Indonesia, “said Coordinating Minister Luhut.
In line with the minister, Al-Thani expressed great expectations to this MoU. “Indonesia’s plan to build and develop the industry the tourism became an exciting opportunity for the QIA to strengthen the investment portfolio in the world, especially in the field of tourism,” he said.
He added,”We look forward to working with the Coordinating Ministry of Maritime Affairs to identify and develop projects that will increasingly make Indonesia as one one of the main tourist destinations of the world.”

Last year, in the meeting with President Joko Widodo at the Bogor Palace, Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar agreed to increase trade and business cooperation.

During the bilateral meetings the two countries stressed the two areas that would justify mutually-beneficial cooperation, namely, infrastructure development and tourism.

The Indonesian private sector has been working very hard to promote stronger bilateral and cultural relations with Qatar, as well as expanding interests in areas of commerce and industry, while opening up opportunities to Qatar and its Middle East neighbors to be part of Indonesia’s industrial growth.

The Qatar diplomatic crisis began when several countries abruptly cut off diplomatic relations with Qatar in June 2017: Saudi Arabia, United Arab Emirates, Bahrain, and Egypt. The downgrading of relations included ambassadors’ withdrawals, and imposition of trade and travel bans.

The crisis may provide opportunities for Indonesian companies, as Qatar seeks trade and business partnerships formerly filled by neighbors, according to Mohamad Bawazeer, Vice Chairman of the Indonesian Chamber of Commerce and Industry and Permanent Committee on the Middle East & OIC countries.

Trade between Indonesia and Qatar reached $900 million in 2016. While Indonesia mainly imports oil from Qatar, the Southeast Asian country exported automotive products, textiles, footwear and furniture to the Gulf nation.

“We from the private sector want Qatar to not only rely on cooperation in the trade sector, but also to become a partner in investment. Our opportunities with Qatar are great, especially before 2022, when Qatar hosts the World Cup,” said Bawazeer.

Currently, Qatar has a large investment in one of Indonesia’s largest telecommunications companies, namely PT Indosat Ooredo Tbk (IDX: ISAT). The company offers both prepaid and post-paid mobile phone services, fixed voice services, fixed wireless and fixed telephone services.

The Middle Eastern nation is also a presence in Indonesia’s banking sector, through ownership of PT Bank QNB Indonesia Tbk (IDX: BKSW). Therefore, according to him it is only natural for these consumers that the Qatari Government, which has served Indonesia greatly with banking and telecommunications services, should also cooperate with modern housing for families.

QIA was founded by the government of Qatar in 2005 and headquartered in Doha, aiming to strengthen the country’s economy by diversifying into new asset classes. Its mission is to invest, manage, and develop reserves of Qatar to create long term value for the next generation.