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View all search resultsThe state asset fund will simply join next Monday's KSSK meeting as an "invitee" without voting rights, the finance minister has explained, citing the P2SK Law as permitting its participation, but at least two top economists are skeptical that its very presence and inputs might color the committee's decisions.
Experts noted that the risk of banks getting too reliant on the funds “is real” and a dependency cycle might materialize as banks grow accustomed to the idea that the funds are a “permanent source of liquidity”.
The planned Indonesia International Financial Center (PFII) will attract massive foreign capital inflows, the government has claimed, but economists view that as a long-term aspiration rather than a realistic near-term goal, pointing to the challenges of taking on global hubs with long-term track records.
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