Indonesia’s new sovereign wealth fund attracts $10b commitment

Jakarta, Indonesia. Photo: Bayu Syaits/unsplash

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.

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.

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

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  • 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.