Indonesia and the United Arab Emirates (UAE) are set to establish a sovereign wealth fund (SWF) that can be used for Infrastructure development. This also includes the development of the new capital city of Indonesia in East Kalimantan. The SWF scheme is still under discussions between both nations and is expected to be finalized shortly through a state visit by UAE officials to Indonesia.
The SWF scheme will serve as a government-owned private equity fund that can be used for investment, especially for Infrastructure development. It will contribute to lowering the state budget and accelerating the implementation of projects.
Besides UAE, the US International Development Finance Corporation (IDFC) is considering the possibility of setting up a SWF with Indonesia. IDFC is responsible for funding of private development projects through foreign aid.