Danantara to Step Up Middle East, Energy Security Investments

Article content(Bloomberg) — Indonesian sovereign wealth fund Danantara plans to double down on investments in the Middle East in spite of the war in Iran, and also plans to allocate more money this year to energy security, Chief Investment Officer Pandu Sjahrir said on Wednesday.Sign In or Create an AccountEmail AddressContinueor View more offersArticle content“We will continue to invest in the Middle East, especially in Mecca — because really, it’s amazing they’ve opened up Saudi for us to invest in,” Pandu said in an interview with Bloomberg TV on the sidelines of a conference in Hong Kong. “So we are doubling down that effort. Because I think in the long term, Mecca will always be Mecca, it will always be a very good investment.” Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentDanantara, which has billed itself as the world’s seventh-largest sovereign fund by total assets, last year bought land and a hotel in the Saudi Arabian city. The purchase was one of its first overseas investments. The fund has also injected capital into Indonesian state-owned enterprises and appointed other asset managers to make some investments on its behalf. Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe year-old fund intends to deploy some $14 billion in 2026 across various asset classes, according to Pandu. “Given what is going on today, there’s probably going to be a bias towards energy security,” he said, adding that more energy is also needed to support the growth in artificial intelligence and digital infrastructure. There will also “be a bias towards critical minerals,” he said. Article contentHe said the ongoing Mideast conflict is likely to have long-lasting effects. “The impact, even if we finish the war this week or next week, you will still feel it for the next nine or 12 months,” he said. Article contentPandu also gave an update on Danantara’s partnerships with other sovereign wealth funds. He said the Indonesian fund is working with China Investment Corp. “to bring partnership capital to invest in general partners, fund managers” that could in turn benefit Indonesia. “We are committing half a billion each of capital,” he said. Article contentArticle contentDanantara also has similar deals with the Qatar Investment Authority on real estate in Indonesia, Pandu said. Last June, the Indonesian fund said it would work with Russia’s Direct Investment Fund to launch a joint investment platform and promote economic cooperation between the two countries, but little has materialized so far.Article contentIndonesia’s President Prabowo Subianto recently visited Moscow and discussed economic matters and energy security issues with Russian President Vladimir Putin. “With this new world order too, I think it also changes the dynamic with Russia,” Pandu said, adding that there are “things to follow up” on and “we just need more deals to happen.” Article contentThis story was produced with the assistance of Bloomberg Automation.Article content—With assistance from Naman Tandon.Article contentTrending Forcing people to pay a moral tax if they leave the country won't inspire them to stay Personal Finance Posthaste: Canadian dollar is being dumped from FX reserves at a record pace. What's going on? 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