Danantara to Form Joint Investment Fund with Egypt
Danantara to Form Joint Investment Fund with Egypt
Jakarta. An Indonesian-Egyptian investment fund involving Danantara is in the pipeline, according to the recent high-level talks between President Prabowo Subianto and his Egyptian counterpart Abdel Fattah el-Sisi.
The bilateral talks over the weekend saw both governments’ appetite for closer investment ties, as the resource-rich Indonesia is pursuing an aggressive plan of moving away from selling raw commodities to value-added exports. Speaking to the press after their meeting, Prabowo said that the leaders “welcomed the initiative of establishing a joint investment fund”.
“It will involve two of our investment bodies,” Prabowo told the briefing, alluding to the sovereign wealth fund Danantara.
He went on to say that the mechanism can create an impetus for “investments in strategic projects”, without going into more details.
A 16-point joint statement published later that day revealed that Danantara had been in discussions with the Future of Egypt for Sustainable Development agency for a “strategic cooperation”. They wrote that the talks had shown “tangible progress”. The document signaled that the partnership could revolve around palm oil and phosphate fertilizers. The fellow BRICS economies are also open to teaming up on logistics and energy sectors.
Egypt not long ago ratified a law to restructure the agency’s economic authority, including plans to create the “Pyramids of the Nile” sovereign fund to invest at home and abroad, Egyptian news outlet Ahram Online wrote.
The country also has The Sovereign Fund of Egypt (TSFE), which aims to draw in capital to the underutilized state assets.
Despite no word on the fund during the presser, Sisi admitted that they had discussed plans related to developing refining and manufacturing industries.
“Egypt is keen to encourage Indonesian companies to increase their investments in the Egyptian market,” Sisi said.
He also offered Jakarta’s businesses to take advantage of Egypt’s status as a regional hub and “strategic gateway” to Arab, African, and international markets.
Danantara has yet to comment on the planned joint fund, although it has pursued similar mechanisms in the past.
Last year, Danantara set up a $4 billion fund with the Qatar Investment Authority, with the financial contribution split in half. They agreed to explore directing the money towards Indonesia’s healthcare and industrialization, among others.
Egyptian investments flowing into Indonesia only neared $4.3 million in the first half of 2026, putting Cairo in 62nd place in the latter’s top foreign investor ranking.
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