Qatar SWFund invests US$1 billion in Indonesia

Qatar's Sovereign Wealth Fund said that it had established a subsidiary in Indonesia, Qatar Holding Indonesia, and planned to invest US$1billion in the country?s sector of commodities and natural resources as part of its strategy to broaden its global investment portfolio.

The company, Qatar Holding, said that it would identify and evaluate investment opportunities, mainly in the sector of commodities and natural resources, in Indonesia, but it would also consider other sectors if profitable.

It stated that QH Indonesia would make a significant contribution to the enhancement of Qatar Holding?s global portfolio by creating a presence in a major Asian emerging market. Indonesia , the world?s fourth most populous country with total population of around 230 million, is rich in natural resources, including oil and gas, coal, tin, nickel, copper, gold, bauxite, palm oil, rubber, coffee, cocoa, timber and other forestry products.

Qatar, like other sovereign investors, has channeled billions of dollars of oil and gas revenues in foreign assets in recent years, taking advantage of inexpensive valuations to extend its influence outside the Middle East, while also benefiting from high returns and the transfer of know-how and technology.

Qatar Holding owns stakes in Barclays, Credit Suisse Group, Volkswagen among other international companies. The fund in October ploughed nearly $800 million into London-based European Goldfields, which has major mining operations in Greece.

In 2008, Qatar Holding injected billions of dollars into both Credit Suisse and Barclays, providing them with vital capital at the height of the global financial crisis. (*)