Japan’s JBIC commits to invest $4b in new Indonesian sovereign wealth fund

Jakarta, Indonesia. Photo: Arga Aditya/unsplash

Indonesia’s government said on Friday the Japan Bank for International Cooperation had committed to invest $4 billion in the Southeast Asian country’s soon-to-be-launched sovereign wealth fund.

The commitment was conveyed by JBIC Governor Tadashi Maeda in a meeting with an Indonesian delegation led by the Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan, according to a statement from the Indonesian embassy in Tokyo.

Indonesian authorities have gone on overseas trips to promote the fund even before its launch, holding meetings with government financing arms and private equity firms like BlackRock and Carlyle Group.

Last month, the government said the U.S. International Development Finance Corporation (DFC) had signed a letter of intent to invest $2 billion in the fund.

Jakarta is currently finishing government regulations that would cement the formation of the fund, including one to allow the government to put in an initial $5 billion in cash and other state assets.

Unlike traditional sovereign wealth funds, set up by wealthy countries to save oil revenues or foreign exchange reserves, the Indonesian fund and others in emerging markets aim to attract foreign firms as co-investors.

Officials have said they intend to grow the fund to $15 billion and will use it to finance infrastructure projects and President Joko Widodo’s plan to relocate Indonesia’s capital to Borneo island from Jakarta.

Indonesia would follow up the JBIC commitment by preparing the technical details, with the hope to realize the investment in the first quarter of 2021, the embassy said.

The JBIC was not immediately available for comment.

During the trip to Tokyo, Minister Luhut also held meetings with at least 20 potential Japanese investors in finance and energy sectors, according to the embassy statement.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.