VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the regulations regarding the Sovereign Wealth Fund (SWF) or the Investment Management Institution (LPI), which were formed through the Job Creation Law, will be completed in December 2020 and start operating in January 2021.

"Next month, all regulations for the Sovereign Wealth Fund will be completed and effective on January," he said when delivering a speech at the Tri Hita Karana Forum Dialogue Cloud Event Indonesia Omnibus Law For a Better Business Better World virtually in Jakarta, Monday.

Luhut said the government is working hard to realize the endowment fund.

Currently, there is an investment commitment from the US investment institution waiting to get into the SWF, the US International Development Finance Corporation (IDFC), valued at $2 billion.

He also said there would be around nine international fund managers who are targeted to inject funds into the Indonesian investment management agency.

The former Coordinating Minister for Political, Legal, and Security Affairs said a number of countries had used the SWF scheme to boost economic growth.

He also called the Indonesian SWF funding source scheme similar to that of Russia and India, which comes from internal (state budget) and foreign investment or co-investment.

"The Indonesian government will contribute around six billion US dollars next month and hopefully next year. Because we have (potential) around 600 billion US dollars from state-owned enterprises [BUMN]. This is a kind of backdoor listing to make this funding very credible," he explained.

Previously, Chairman of the National Economic Recovery and Transformation Task Force (Satgas PEN) Budi Gunadi Sadikin said that the SWF is an investment instrument, with later corporate development in Indonesia being financed by foreign investors, so this SWF is also a form of stimulus for corporations.

He emphasized that the investment is in the form of ownership or stock investment, not investment loans that must be returned.

"That is why we see that foreign investment mechanisms in difficult times like this will greatly help raise the profile of Indonesian investment and also employment in Indonesia which is really needed by many people," he explained. (Antaranews)