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Indonesian hunts for tourism funding with new mutual funds scheme
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Tourism Minister Arief Yahya speaks to journalists after the launching ceremony of Hotel Indonesia Group (HIG) in Jakarta on Sept. 28, 2016. (JP/Anton Hermansyah)
T
he government is teaming up with fund management companies to prepare for the launch of a limited participation mutual funds (RDPT) product by March this year. The government hopes this scheme will support the development of the country’s priority tourist destinations.
Tourism Minister Arief Yahya said the RDPT scheme was expected to collect around Rp 1 trillion (US$75 million) from investors this year as an alternative source of funding.
One of fund managers involved in the preparation, Arief said, was state-owned fund manager Bahana TCW Investment Management.
“If we can accelerate the [launch], this mutual funds product will be the [country’s] first in the tourist sector," he said on Wednesday as quoted by Kontan.co.id.
(Read also: Big plans in store for Indonesia tourist destinations)
In the long run, the scheme could potentially bring in Rp 57 trillion in alternative funding to support infrastructure development in the tourist sector.
Arief said the RDPT product was designed to have a maturity period of eight years and was convertible to equity.
The alternative funding scheme is necessary because of limits in the state budget and minor foreign direct investment (FDI) in the sector. The government needs at least Rp 200 trillion this year to develop infrastructure at its 10 designated priority destinations. To date, it has only secured Rp 30 trillion for the purpose. (rbk/hwa)
