Indonesia‘s government has issued three regulations enabling it to establish a sovereign wealth fund (SWF) as part of the country’s efforts to attract new sources of investment, the finance ministry said on Wednesday.
Unlike many SWFs set up by wealthy countries to save oil revenues or foreign exchange reserves, the Indonesian fund – like others in emerging markets – is designed to attract foreign firms as co-investors.
The new regulations include rules stating that the fund will have 75 trillion rupiah ($5.3 billion) of capital, including 15 trillion rupiah in starting capital coming from the state budget.
The government is hoping to raise $15 billion for the fund, which it will use to invest in infrastructure projects as well as the planned relocation of the country’s capital.
The finance ministry said in a statement that this month the government will start the recruitment process for supervisory boards that will help manage the fund.
Government officials aim to launch the SWF early next year and have already approached various foreign investors.
Southeast Asia’s largest economy has approached other countries and international firms about the fund. Luhut Pandjaitan, the coordinating minister for maritime affairs and investment, last week visited the United Arab Emirates and Saudi Arabia.
Several countries have expressed an interest in investing in Indonesia‘s SWF, including the Japan Bank for International Cooperation (JBIC) and the U.S. International Development Finance Corporation, the government said.