TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Omnibus bill provides legal certainty on Indonesia’s sovereign wealth fund
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.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
President Joko "Jokowi" Widodo (Presidential Palace Press Bureau/Muchlis Jr)
T
he 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 enterprises (SOE) minister will act as a member of the board, Article 157 stipulates.
The investment management agency will also be led by five commissioners, three from a professional background, one from the Finance Ministry and another from the SOE Ministry, according to Article 158.
Through the sovereign wealth fund, investors will act as anchor investors for entire projects or as coinvestors for specific projects in a range of fields, including infrastructure, energy and resources, health care, tourism and technology, government officials have said. The fund, alongside the partners, will then be directed to finance both greenfield and brownfield projects. They will also be directed to invest in recycling projects in the future.
Read also: Things you need to know about government's sovereign wealth fund
