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Jakarta Post

Government’s sovereign wealth fund plan questioned

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, January 21, 2020   /  07:57 am
The Jakarta Post Image
President Joko "Jokowi" Widodo (left) chats with Abu Dhabi Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan from the United Arab Emirates (right) during the President's visit to Abu Dhabi on Sunday, Jan. 12, 2020.(Presidential Palace Press Bureau/Laily Rachev)

The government’s plan to establish its own sovereign wealth fund has raised questions regarding the source of funding, as well as how the fund is managed to ensure it does not suffer the same fate as Malaysia’s 1Malaysia Development Berhad (1MDB). The fund’s establishment will be regulated in the anticipated omnibus bill on job creation, which is currently being drafted by the government. A presentation shared by the Office of the Coordinating Economic Minister on the omnibus bill revealed that the fund’s establishment was aimed at managing and allocating a sum of funding and/or state assets. The fund’s assets will be in the form of state capital injection, assets/business development returns, state-owned enterprise assets, grants and other defined sources. The sovereign wealth fund will be owned by the government and will be able to engage in direc...