Indonesia’s state wealth fund said it has inked a new agreement that will allow funds from the United Arab Emirates to be placed in a variety of its high-yielding financial instruments.
The investment framework deal was signed with the Abu Dhabi Growth Fund, which in March announced a $10 billion investment in the Southeast Asian nation’s wealth fund, according to a statement on Saturday by the Indonesia Investment Authority.
Southeast Asia’s biggest economy and the UAE have been intensifying political and economic ties, Bloomberg reported.
President Joko Widodo’s recent visit to Abu Dhabi resulted in an investment commitment of $32.7 billion from UAE companies.
Indonesia launched its sovereign wealth fund in February with a target of managing $20 billion of assets, including some $5 billion the state will put into the fund this year, and financing infrastructure projects.
