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Jakarta Post

Omnibus bill provides legal certainty on Indonesia’s sovereign wealth fund

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, February 24, 2020   /  05:08 pm
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President Joko "Jokowi" Widodo(Presidential Palace Press Bureau/Muchlis Jr)

The omnibus bill on job creation mandates the establishment of an investment management agency to manage a sovereign wealth fund drawn from tax revenue and foreign investment that is intended to aid Indonesia’s development. Chapter 10 on central government investment and national strategic projects in the draft bill mandates the establishment of a “special authority” agency led by the finance minister, a vehicle that President Joko “Jokowi” Widodo has described as a sovereign wealth fund. “The finance minister, as the state treasurer, can invest in financial instruments, manage assets for investment, partner with trust funds, determine investment partners, give and accept loans and manage all assets,” Article 146 of the omnibus bill states. The finance minister will lead the board of directors and the state-owned ente...