Indonesia is ready to start a second round of fundraising for its new sovereign wealth fund after securing a first tranche of about $15bn for the entity, according to a senior minister.
Luhut Pandjaitan, minister of maritime affairs and investment, told the Financial Times that Indonesia has raised up to $15.5bn in the first round of funding for the fund, which is intended to propel infrastructure investment in south-east Asia’s largest economy as quoted from the Financial Times.
The new fund could be launched as early as mid-January after President Joko Widodo signed a presidential decree finalising its structure this month, Mr Pandjaitan said. The fund represents the first serious test of a package of sweeping reforms passed by Indonesia in October that are designed to attract foreign investors to the world’s fourth most populous nation as it seeks to counter the economic impact of the coronavirus pandemic.
It will also be the first significant gauge of international appetite for sovereign wealth funds in the region after the multibillion-dollar Malaysia Development Berhad. Mr Pandjaitan said headhunters were aiming to hire managers for the fund, to be known as the Nusantara Investment Authority, by next month. As who will invest, it is remains to be seen.
(Source: Financial Times)