Indonesia and the United Arab Emirates (UAE) are exploring plans to establish a sovereign wealth fund (SWF) which will be a pooling of investment from various countries of up to US$10 billion, officials said today. The fund can be used to finance infrastructure projects in Southeast Asia biggest economy.

“As a result of discussions with the Abu Dhabi Investment Authority (ADIA), Minister of Energy, CEO Mubadala and several high-ranking officials in Abu Dhabi, we plan to establish sovereign wealth funds. We will study the proposal soon and I hope that the decision will not take long,” said Indonesian Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan in a written statement.

In addition, the minister went on, the UAE will also implement an ADIA investment of around $1 billion in property, real estate projects including the development of tourist destinations and other private projects in Indonesia.

“The UAE will visit Indonesia next month, meeting with the Ministry of Finance and state firm, PT Sarana Multi Infrastruktur to discuss the schemes, regulations, and legislation needed for the establishment of the SWF. They will also share their experiences in forming wealth funds with India and Egypt,” Pandjaitan said.