Indonesian govt paves way for 2021 launch of sovereign wealth fund

Jakarta, Indonesia. Photo: Bayu Syaits/unsplash

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.

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. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

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.