Categories: Indonesia

A $6.8 Billion Budget: Indonesia Sets to Finance the Economy

In order to create a sovereign wealth fund to attract investment and boost the economy, the Indonesian government is planning 75 trillion rupiah (S$6.8 billion) in cash. Global heavyweights have shown interest in joining the United States and the United Arab Emirates. The creation of a sovereign fund, to be known as the Investment Authority of Indonesia, is part of the Job Creation Law.

Sri Mulyani Indrawati, Minister of Finance, said 30 trillion rupees of capital would be in currency, while the remainder would be in the form of state-owned enterprise (SOE) shares and other state properties. The fund seeks to raise 225 trillion rupiah in investment, with foreign funds already lined up for investment from the UAE, Japanese conglomerate Softbank and the US International Development Finance Corporation (IFDC).

However, the wealth fund that will be spent remains unknown. Dr. Sri Mulyani referred to the combination of a fund for growth and a fund for stabilisation. Projects in sectors like infrastructure, healthcare, energy and resources, tourism and technology have previously been listed by officials. Other sovereign wealth funds elsewhere are also participating in capital markets.

According to the statute, the wealth fund will have a supervisory board chaired by the finance minister, with members including the minister of the SOEs and three more experts. In fact, five experts will be on the board of directors to oversee the operation of the fund, including the creation of the strategy and work plan of the fund, among other items.

Noto

Jakarta-based Newswriter for The Asian Affairs. A budding newswriter that always keep track of the latest trends and news that are happening in my country Indonesia.

Recent Posts

V Surprises ARMY with Two Holiday Releases: A Festive Collab with Park Hyo-shin and “White Christmas” Cover

For K-pop fans, the Christmas season this year has become even more magical as several of their preferred stars reveal…

November 22, 2024

Celine Names TWS as Global Ambassadors Following Suzy Bae Announcement

After Suzy Bae's nomination as Celine's worldwide ambassador, the venerable French luxury fashion company has taken another bold step choosing…

November 22, 2024

Reddit Faces Widespread Outage, Users Turn to Workarounds Amid ‘Server Error’ Messages

Thousands of users of the well-known social network Reddit were left without access after a major outage of the website.…

November 22, 2024

Anne Hathaway Casted as ‘Verity’ in Colleen Hoover’s Book Adaptation

Anne Hathaway is slated to play the much expected film version of Colleen Hoover's best-selling book Verity in front of…

November 21, 2024

Gucci Set to Revolutionize Fashion Presentations with Unified Shows in 2025 under Sabato De Sarno’s Vision

Gucci is ready to change its presentation approach for 2025 in a radical action aimed to revolutionize the fashion industry.…

November 21, 2024

South Korea’s “Korea Discount”: Addressing the Governance Gap to Boost Market Value

As world investors wait for significant changes that might solve long-standing problems of governance and responsibility in South Korea's companies,…

November 21, 2024

This website uses cookies.

Read More