Indonesia has received investment commitments of up to $10 billion from global firms for its ambitious sovereign wealth fund, a senior minister said on Tuesday, ahead of its launch expected this year.
The Indonesia Investment Authority (INA) aims to attract foreign funds as co-investors, unlike other sovereign wealth funds set up by more developed countries to manage oil revenues or foreign exchange reserves.
Airlangga Hartarto, Indonesia’s chief economic minister, told a business forum the INA had been promoted among more than 50 global investors and more commitments had been secured.
With a target of managing $20 billion, the INA will be seeded by Indonesia’s government with $5 billion in cash and other assets.
Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) has signed an informal letter of interest about investing up to $2 billion, alongside an up to $1.5 billion commitment from Dutch pension fund APG, the minister’s presentation showed.
Also listed was Singapore sovereign wealth fund GIC, while Australia’s investment bank Macquarie has offered to manage a toll road fund and could contribute another $300 million, the presentation showed.
APG, Macquarie, CDPQ and GIC did not immediately respond to separate requests from Reuters for confirmation.
Indonesia has previously reported investment interest of up to $6 billion by the U.S. International Development Finance Corporation and Japan Bank for International Cooperation.
Airlangga said the Abu Dhabi Investment Authority (ADIA) had also been approached.
The fund’s supervisory council will include finance minister Sri Mulyani Indrawati and state-owned enterprise minister Erick Thohir.
Erick told Tempo magazine the council had considered about 30 names as possible candidates for chief executive.
Those included tech investor and coal businessman Pandu Sjahrir, Indika Energy’s Arsjad Rasjid, and Arief Budiman, a former chief financial officer of state energy firm Pertamina, Erick said in the interview.
Bloomberg News reported last week Pandu, a nephew of a senior government minister, was considered a frontrunner.
Airlangga made no mention of the candidates in Tuesday’s presentation.