Indonesia Appoints Sovereign Wealth Fund Supervisory Members

Indonesia is moving closer to establishing a new sovereign wealth fund (SWF), planning to kickstart the fund early this year with $5 billion in assets.

Following the Job Creation Law passed in October 2020, Indonesia is moving closer to establishing a new sovereign wealth fund (SWF), Indonesia Investment Authority (INA), with the appointment of the fund’s supervisory board members – Finance Minister Sri Mulyani, Erick Thohir, Cyril Noerhadi, Yozua Makes, and Haryanto Sahari.

The government plans to kickstart the fund early this year with $5 billion in assets and will seek about $16 billion in investments initially. Pledges from foreign investors, including the United States International Development Finance Corporation, Japan Bank for International Cooperation, Canada pension fund CDPQ, Dutch pension fund APG, and Macquarie Group, have reached $10 billion as of January 27,2021. The fund will be used to finance projects in infrastructure, health care, tourism, and technology, and hence is expected to support the growth of local start-ups.