JAKARTA (TheInsiderStories) – The state government pledged state-owned enterprises (SOEs) shares of Rp50 trillion (US$3.55 billion) at the Indonesia Investment Authority, said President Joko Widodo last week. The country also injected fresh capital Rp10 trillion in the sovereign wealth fund (SWF) body.
“We have conveyed the names of the supervisory board to the House and we hope it will be completed next week,” he told the audiences on Friday night.
He said in the front of financial industry players, the establishment of this institution aimed to seize the investment opportunities and alternative solutions for development financing in the country. In the first quarter of this year, the new agency is expected to raises new investment around $20 billion.
The optimism come after government do their efforts by approached the potential investors, such as United Arab Emirates (UAE), Japan, Britain, Germany, and United States. State own ministry has appointed to finalize the SWF‘ formation. Japan’ Softbank Corp., founder Masayoshi Son has expressed the commitment during a meeting with President Widodo.
He looking for another investment in the new capital city projects after declared to invest $2 billion in the country in July. His company has joined a growing list of global investors keen to participate in building a new $34 billion capital in Indonesia.
Son, who met the president for the second time in six months, said SoftBank wanted to support the building of a smart and green city loaded with artificial intelligence. CEO of the International Development Finance Corporation, Adam Boehler said, his company also invested $2 billion and UAE participation at the Fund around $6.8 billion.
The SWF scheme will serve as government-owned private equity that can be used as investment, especially for infrastructure development. Talking about the organization, the head of state claimed has sent the member names to the parliament.
“We have conveyed the names of the supervisory board to the DPR and we hope it will be completed next week,” concluded by the president.
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