1. How to make Indonesia’s sovereign wealth fund work
- Author:
- Kyunghun Kim
- Publication Date:
- 07-2022
- Content Type:
- Commentary and Analysis
- Institution:
- Lowy Institute for International Policy
- Abstract:
- The Indonesian government has established a sovereign wealth fund: the Indonesia Investment Authority (INA). Unlike many other sovereign wealth funds that manage large national savings, INA seeks to attract foreign co-investors to help fund economic development. INA’s near-term role is to purchase assets from heavily-indebted infrastructure-related state enterprises to improve their financial health and allow them to carry out further development projects. INA’s corporate governance arrangements are reasonable on paper. Much will depend on implementation. INA has attracted interest from a variety of international financiers, including state-backed investors from the United States, Japan, United Arab Emirates, and China. Clarifying INA’s investment goals and strengthening external monitoring mechanisms could help attract greater interest.
- Topic:
- Sovereign Wealth Funds, Economy, Investment, and Corporate Governance
- Political Geography:
- Indonesia and Southeast Asia